Financial Survey: Sohu.com (NASDAQ:SOHU) versus 8X8 (NASDAQ:EGHT)

8X8 (NASDAQ:EGHTGet Free Report) and Sohu.com (NASDAQ:SOHUGet Free Report) 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 valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
8X8 $733.82 million 0.39 -$73.14 million ($0.44) -5.30
Sohu.com $600.67 million 0.63 -$30.38 million ($0.89) -12.84

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

Analyst Ratings

This is a breakdown of recent ratings for 8X8 and Sohu.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
8X8 0 3 3 0 2.50
Sohu.com 0 0 1 0 3.00

8X8 currently has a consensus price target of $3.72, indicating a potential upside of 59.72%. Sohu.com has a consensus price target of $20.00, indicating a potential upside of 74.98%. Given Sohu.com’s stronger consensus rating and higher probable upside, analysts plainly believe Sohu.com is more favorable than 8X8.

Profitability

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

Net Margins Return on Equity Return on Assets
8X8 -7.28% -5.89% -0.75%
Sohu.com -5.06% -4.88% -2.73%

Insider and Institutional Ownership

94.0% of 8X8 shares are held by institutional investors. Comparatively, 33.0% of Sohu.com shares are held by institutional investors. 1.1% of 8X8 shares are held by company insiders. Comparatively, 21.1% of Sohu.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

8X8 has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Sohu.com has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

About 8X8

(Get Free Report)

8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small and mid-size businesses, mid-market and larger enterprises, government agencies, and other organizations worldwide. It provides 8×8 Work, a self-contained end-to-end united communications solution that delivers enterprise voice with public switched telephone network connectivity, video meetings, and unified messaging, as well as direct messages, public and private team messaging rooms, and short and multimedia services; 8×8 Contact Center, a multi-channel cloud-based contact center solution; and 8×8 CPaaS, a set of global communications Platform-as-a-Service. The company also offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. It markets its services to end users through industry conferences, trade shows, Webinars, and digital advertising channels. The company was incorporated in 1987 and is headquartered in Campbell, California.

About Sohu.com

(Get Free Report)

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.

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