Reviewing 8×8 (EGHT) & Telecom Argentina SA (TEO)
8×8 (NASDAQ: EGHT) and Telecom Argentina SA (NYSE:TEO) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitabiliy, risk, institutional ownership, analyst recommendations, earnings and dividends.
Telecom Argentina SA pays an annual dividend of $0.45 per share and has a dividend yield of 1.7%. 8×8 does not pay a dividend. Telecom Argentina SA pays out 26.6% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for 8×8 and Telecom Argentina SA, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telecom Argentina SA||0||0||2||0||3.00|
8×8 presently has a consensus price target of $17.63, indicating a potential upside of 19.49%. Telecom Argentina SA has a consensus price target of $23.00, indicating a potential downside of 10.68%. Given 8×8’s higher probable upside, research analysts plainly believe 8×8 is more favorable than Telecom Argentina SA.
This table compares 8×8 and Telecom Argentina SA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telecom Argentina SA||13.34%||38.62%||16.30%|
Volatility and Risk
8×8 has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Telecom Argentina SA has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Earnings and Valuation
This table compares 8×8 and Telecom Argentina SA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|8×8||$253.39 million||5.33||$3.18 million||($0.05)||-295.00|
|Telecom Argentina SA||$3.48 billion||1.43||$906.06 million||$1.69||15.24|
Telecom Argentina SA has higher revenue and earnings than 8×8. 8×8 is trading at a lower price-to-earnings ratio than Telecom Argentina SA, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.2% of 8×8 shares are held by institutional investors. Comparatively, 5.8% of Telecom Argentina SA shares are held by institutional investors. 4.0% of 8×8 shares are held by company insiders. Comparatively, 1.0% of Telecom Argentina SA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Telecom Argentina SA beats 8×8 on 9 of the 15 factors compared between the two stocks.
8×8, Inc. provides cloud-based, enterprise-class software solutions. The Company’s solutions are delivered through Software as a Service (SaaS) business model. Its segments include Americas and Europe. Its software platform brings together cloud, mobile, collaboration, video and data science technologies. Through a combination of open application program interface (API) and pre-built integrations, its solutions leverage critical customer context from internal data systems and customer relationship management (CRM) systems. Its software product, branded as 8×8 Virtual Office, delivers voice as a service across the world. 8×8 Virtual Office enables a customer to use a single business phone number to place and receive calls from any supported device. It provides software to enable a multi-channel contact center under the 8×8 Virtual Contact Center brand. Its Virtual Office Meetings software solution is a tool for teams within the enterprise to meet and collaborate on a shared project.
About Telecom Argentina SA
Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company’s segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.
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