Financial Survey: 8X8 (NASDAQ:EGHT) versus Rumble (NASDAQ:RUM)

8X8 (NASDAQ:EGHT) and Rumble (NASDAQ:RUM) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Institutional and Insider Ownership

94.0% of 8X8 shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 2.0% of 8X8 shares are owned by company insiders. Comparatively, 45.1% of Rumble shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
8X8	0.22%	25.77%	5.30%
Rumble	-106.91%	-42.47%	-34.74%

Analyst Ratings

This is a summary of recent ratings and price targets for 8X8 and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	1	1	1	0	2.00
Rumble	1	0	0	0	1.00

8X8 presently has a consensus target price of $2.45, suggesting a potential upside of 31.02%. Given 8X8’s stronger consensus rating and higher possible upside, analysts clearly believe 8X8 is more favorable than Rumble.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$735.75 million	0.36	$1.65 million	$0.02	93.50
Rumble	$100.62 million	34.09	-$81.83 million	($0.43)	-18.30

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

Risk and Volatility

8X8 has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, Rumble has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

8X8 beats Rumble on 12 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 Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.