Financial Analysis: 8X8 (NASDAQ:EGHT) & LiveRamp (NYSE:RAMP)

8X8 (NASDAQ:EGHTGet Free Report) and LiveRamp (NYSE:RAMPGet Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Insider and Institutional Ownership

99.9% of 8X8 shares are owned by institutional investors. Comparatively, 90.5% of LiveRamp shares are owned by institutional investors. 1.1% of 8X8 shares are owned by company insiders. Comparatively, 2.9% of LiveRamp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for 8X8 and LiveRamp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
8X8 1 6 2 0 2.11
LiveRamp 0 0 4 0 3.00

8X8 currently has a consensus target price of $5.13, suggesting a potential upside of 111.02%. LiveRamp has a consensus target price of $33.83, suggesting a potential upside of 14.57%. Given 8X8’s higher possible upside, research analysts plainly believe 8X8 is more favorable than LiveRamp.

Earnings & Valuation

This table compares 8X8 and LiveRamp’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 0.39 -$73.14 million ($0.54) -4.50
LiveRamp $596.58 million 3.28 -$118.70 million ($1.41) -20.94

8X8 has higher revenue and earnings than LiveRamp. LiveRamp is trading at a lower price-to-earnings ratio than 8X8, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 8X8 and LiveRamp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
8X8 -8.44% -41.65% -4.70%
LiveRamp -15.30% -3.72% -2.95%

Volatility and Risk

8X8 has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, LiveRamp has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Summary

8X8 beats LiveRamp on 8 of the 14 factors compared between the two stocks.

About 8X8

(Get Free Report)

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 LiveRamp

(Get Free Report)

LiveRamp Holdings, Inc., a technology company, operates a data collaboration platform in the United States, Europe, the Asia-Pacific, and internationally. The company operates LiveRamp Data Collaboration platform enables an organization to unify customer and prospect data to build a single view of the customer in a way that protects consumer privacy. Its platform supports various people-based marketing solutions, including data collaboration, activation, measurement and analytics, identity, and data marketplace. The company sells its solutions to enterprise marketers, agencies, marketing technology providers, publishers, and data providers in various industry verticals, such as financial, insurance and investment services, retail, automotive, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, and non-profit. The company was formerly known as Acxiom Holdings, Inc. and changed its name to LiveRamp Holdings, Inc. in October 2018. LiveRamp Holdings, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

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