Analyzing 8X8 (NYSE:EGHT) and Inovalon (NYSE:INOV)
8X8 (NYSE:EGHT) and Inovalon (NASDAQ:INOV) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This table compares 8X8 and Inovalon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares 8X8 and Inovalon’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|8X8||$352.59 million||5.66||-$88.74 million||($0.69)||-28.87|
|Inovalon||$527.68 million||6.09||-$39.16 million||$0.18||115.11|
Inovalon has higher revenue and earnings than 8X8. 8X8 is trading at a lower price-to-earnings ratio than Inovalon, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
90.4% of 8X8 shares are held by institutional investors. Comparatively, 33.9% of Inovalon shares are held by institutional investors. 3.0% of 8X8 shares are held by company insiders. Comparatively, 50.4% of Inovalon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for 8X8 and Inovalon, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
8X8 currently has a consensus price target of $24.11, suggesting a potential upside of 21.04%. Inovalon has a consensus price target of $18.60, suggesting a potential downside of 10.23%. Given 8X8’s stronger consensus rating and higher probable upside, research analysts plainly believe 8X8 is more favorable than Inovalon.
Risk & Volatility
8X8 has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Inovalon has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Inovalon beats 8X8 on 9 of the 14 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.
Inovalon Company Profile
Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare. It operates the Inovalon ONE Platform, a cloud-based platform that interconnect with the healthcare ecosystem to aggregate and analyze data in real-time, as well as empowers the application in resulting insights. The company also operates myABILITY software platform, an integrated set of cloud-based applications for providers that offers connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities to acute, post-acute, and ambulatory point-of-care provider facilities. In addition, it offers advisory, implementation, and support services. The company serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. Its platforms include information of data pertaining to approximately 964,000 physicians; 519,000 clinical facilities; and approximately 264 million individuals and 42 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.
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