8X8 (NASDAQ:EGHT – Get Free Report) and Data Storage (NASDAQ:DTST – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.
Volatility & Risk
8X8 has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Data Storage has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
Earnings and Valuation
This table compares 8X8 and Data Storage’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 8X8 | $743.94 million | 0.68 | -$73.14 million | ($0.63) | -6.89 |
| Data Storage | $22.09 million | 0.90 | -$4.36 million | ($0.62) | -4.71 |
Profitability
This table compares 8X8 and Data Storage’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 8X8 | -9.83% | -51.00% | -6.08% |
| Data Storage | -18.87% | -20.22% | -16.62% |
Insider and Institutional Ownership
97.8% of 8X8 shares are owned by institutional investors. Comparatively, 8.0% of Data Storage shares are owned by institutional investors. 1.1% of 8X8 shares are owned by insiders. Comparatively, 42.6% of Data Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for 8X8 and Data Storage, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 8X8 | 1 | 8 | 5 | 0 | 2.29 |
| Data Storage | 0 | 0 | 0 | 0 | N/A |
8X8 presently has a consensus price target of $6.17, suggesting a potential upside of 42.23%. Given 8X8’s higher probable upside, analysts clearly believe 8X8 is more favorable than Data Storage.
Summary
8X8 beats Data Storage on 7 of the 13 factors compared between the two stocks.
About 8X8
8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small and mid-size businesses, mid-market and larger enterprises, government agencies, and other organizations worldwide. It provides 8×8 Work, a self-contained end-to-end united communications solution that delivers enterprise voice with public switched telephone network connectivity, video meetings, and unified messaging, as well as direct messages, public and private team messaging rooms, and short and multimedia services; 8×8 Contact Center, a multi-channel cloud-based contact center solution; and 8×8 CPaaS, a set of global communications Platform-as-a-Service. The company also offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. It markets its services to end users through industry conferences, trade shows, Webinars, and digital advertising channels. The company was incorporated in 1987 and is headquartered in Campbell, California.
About Data Storage
Data Storage Corporation provides multi-cloud information technology solutions primarily in the United States. The company offers data protection and disaster recovery solutions; high availability, data vaulting, retention, Infrastructure as a Service, standby server, support and maintenance, and internet solutions. It also provides cybersecurity solutions comprising managed endpoint security with active threat mitigation, system security assessment, and risk analysis services, as well as applications for continuous security and auditing; and voice and data solutions, such as VoIP and data services with fiber optic, coaxial, and wireless networks for businesses to connect from any location. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government sectors. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.
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