8X8 (NASDAQ: EGHT) and Orange (NYSE:ORAN) are both telecommunications services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Valuation & Earnings

This table compares 8X8 and Orange’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
8X8 $253.39 million 5.24 -$4.75 million ($0.08) -180.63
Orange $45.29 billion 1.03 $3.25 billion N/A N/A

Orange has higher revenue and earnings than 8X8.

Risk and Volatility

8X8 has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Orange has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Dividends

Orange pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. 8X8 does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
8X8 -2.56% 0.03% 0.03%
Orange N/A N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations for 8X8 and Orange, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
8X8 0 5 6 0 2.55
Orange 1 1 3 0 2.40

8X8 presently has a consensus price target of $17.44, suggesting a potential upside of 20.72%. Given 8X8’s stronger consensus rating and higher possible upside, analysts clearly believe 8X8 is more favorable than Orange.

Insider & Institutional Ownership

71.6% of 8X8 shares are held by institutional investors. Comparatively, 1.2% of Orange shares are held by institutional investors. 4.4% of 8X8 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

8X8 beats Orange on 8 of the 13 factors compared between the two stocks.

8X8 Company Profile

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.

Orange Company Profile

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

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