8×8 (NASDAQ: EGHT) and Telefonica Brasil (NYSE:VIV) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Valuation & Earnings

This table compares 8×8 and Telefonica Brasil’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
8×8 $262.45 million 4.76 -$391,000.00 ($0.06) -226.67
Telefonica Brasil $13.46 billion 2.03 $4.42 billion $0.74 21.82

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

Risk & Volatility

8×8 has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Telefonica Brasil has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for 8×8 and Telefonica Brasil, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
8×8 0 4 6 0 2.60
Telefonica Brasil 0 2 1 0 2.33

8×8 presently has a consensus price target of $17.44, indicating a potential upside of 28.27%. Telefonica Brasil has a consensus price target of $15.00, indicating a potential downside of 7.12%. Given 8×8’s stronger consensus rating and higher probable upside, research analysts clearly believe 8×8 is more favorable than Telefonica Brasil.

Dividends

Telefonica Brasil pays an annual dividend of $0.60 per share and has a dividend yield of 3.7%. 8×8 does not pay a dividend. Telefonica Brasil pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 8×8 has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

69.5% of 8×8 shares are held by institutional investors. Comparatively, 10.0% of Telefonica Brasil shares are held by institutional investors. 4.4% of 8×8 shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares 8×8 and Telefonica Brasil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
8×8 -2.44% 1.38% 1.20%
Telefonica Brasil 9.41% 5.91% 3.97%

8×8 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.

Telefonica Brasil Company Profile

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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