Head-To-Head Comparison: 8X8 (NASDAQ:EGHT) vs. DeFi Development (NASDAQ:DFDV)

8X8 (NASDAQ:EGHT) and DeFi Development (NASDAQ:DFDV) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Volatility & Risk

8X8 has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, DeFi Development has a beta of -6.98, indicating that its stock price is 798% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
8X8	-0.53%	20.12%	3.92%
DeFi Development	N/A	64.98%	35.97%

Institutional and Insider Ownership

94.0% of 8X8 shares are held by institutional investors. Comparatively, 0.5% of DeFi Development shares are held by institutional investors. 2.0% of 8X8 shares are held by insiders. Comparatively, 19.2% of DeFi Development shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares 8X8 and DeFi Development”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$715.07 million	0.45	-$27.21 million	($0.02)	-114.50
DeFi Development	$2.10 million	56.44	-$2.73 million	$2.54	1.46

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for 8X8 and DeFi Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	4	0	2	1	2.00
DeFi Development	0	1	1	1	3.00

8X8 presently has a consensus target price of $2.23, indicating a potential downside of 2.62%. DeFi Development has a consensus target price of $35.00, indicating a potential upside of 840.86%. Given DeFi Development’s stronger consensus rating and higher probable upside, analysts plainly believe DeFi Development is more favorable than 8X8.

Summary

DeFi Development beats 8X8 on 10 of the 14 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 DeFi Development

We are a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. We seek to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through our online platform, we provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which we believe represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. We have developed a flexible, two-sided, B2B marketplace that connects commercial borrowers and lenders, with a human touch. Commercial property owners, operators, and developers can quickly create an account on our platform, set up their own profile, and submit and manage loan requests on their dashboard in a digital experience. Our algorithms automatically match borrowers to their best loan options or to our internal capital markets advisors that guide the borrower throughout the process and connect them with a potentially suitable loan product and lender. Originators that work at commercial mortgage lenders can access their accounts on our platform to view, sort, and communicate with their matched borrowers in real-time, tracking their loan progress through our portal. Capital markets advisors that work internally have their own interface that gives them access to targeted loan opportunities empowering them to better assist borrowers in managing their choices, leading to the best possible outcomes for both lenders and borrowers while building trust, all of which is intended to enhance our brand. We believe that as we scale, we can use the same technology to provide similar services across the commercial property and small business value chain. Our mission is to remove frictions from traditional commercial property financing, making it easier and more cost-effective for all parties in the transaction. We intend to disintermediate commercial real estate financing, flattening the playing field for commercial property owners and developers, and lenders of all sizes, democratizing an otherwise fractured and elitist market. We were originally formed as Janover Ventures LLC, a Florida limited liability company, on November 28, 2018, and converted to Janover Inc., a Delaware corporation, on March 9, 2021. We are headquartered at 6401 Congress Avenue, Suite 250, Boca Raton, Florida.