Comparing 8X8 (NASDAQ:EGHT) and N-able (NYSE:NABL)

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

Analyst Recommendations

This is a breakdown of current ratings for N-able and 8X8, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
N-able	2	4	2	0	2.00
8X8	1	1	2	0	2.25

N-able currently has a consensus target price of $5.08, indicating a potential upside of 29.43%. 8X8 has a consensus target price of $3.12, indicating a potential upside of 74.09%. Given 8X8’s stronger consensus rating and higher possible upside, analysts clearly believe 8X8 is more favorable than N-able.

Earnings and Valuation

This table compares N-able and 8X8″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
N-able	$511.43 million	1.45	-$18.82 million	($0.02)	-196.25
8X8	$735.75 million	0.35	$1.65 million	$0.04	44.88

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

Volatility and Risk

N-able has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
N-able	-0.88%	3.55%	2.04%
8X8	0.64%	28.72%	6.14%

Institutional & Insider Ownership

96.3% of N-able shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 2.0% of N-able shares are held by company insiders. Comparatively, 2.1% of 8X8 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

8X8 beats N-able on 11 of the 13 factors compared between the two stocks.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

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.