Analyzing 8X8 (NASDAQ:EGHT) & HubSpot (NYSE:HUBS)

8X8 (NASDAQ:EGHT) and HubSpot (NYSE:HUBS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Valuation and Earnings

This table compares 8X8 and HubSpot”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$715.07 million	0.39	-$27.21 million	($0.04)	-49.75
HubSpot	$2.63 billion	8.10	$4.63 million	($0.08)	-5,079.48

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for 8X8 and HubSpot, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	4	1	3	0	1.88
HubSpot	1	3	28	2	2.91

8X8 presently has a consensus target price of $2.49, suggesting a potential upside of 24.91%. HubSpot has a consensus target price of $613.45, suggesting a potential upside of 50.96%. Given HubSpot’s stronger consensus rating and higher possible upside, analysts clearly believe HubSpot is more favorable than 8X8.

Institutional and Insider Ownership

94.0% of 8X8 shares are owned by institutional investors. Comparatively, 90.4% of HubSpot shares are owned by institutional investors. 2.0% of 8X8 shares are owned by insiders. Comparatively, 4.0% of HubSpot shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

8X8 has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
8X8	-0.82%	14.95%	2.71%
HubSpot	-0.12%	1.21%	0.64%

Summary

HubSpot beats 8X8 on 9 of the 15 factors compared between the two stocks.

About 8X8

8×8, Inc. engages in the provision of enterprise communication solutions. It offers solutions to the business services, education, financial services, government, healthcare, and manufacturing industries. The company was founded in February 1987 and is headquartered in Campbell, CA.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.