Financial Contrast: 8X8 (NASDAQ:EGHT) and Braze (NASDAQ:BRZE)

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

Earnings and Valuation

This table compares 8X8 and Braze”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$735.75 million	0.41	$1.65 million	$0.02	107.50
Braze	$738.18 million	3.91	-$131.29 million	($1.22)	-20.86

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

Volatility & Risk

8X8 has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Braze has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

94.0% of 8X8 shares are owned by institutional investors. Comparatively, 90.5% of Braze shares are owned by institutional investors. 2.0% of 8X8 shares are owned by insiders. Comparatively, 18.2% of Braze shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for 8X8 and Braze, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	1	1	1	0	2.00
Braze	1	1	22	0	2.88

8X8 presently has a consensus target price of $2.45, indicating a potential upside of 13.95%. Braze has a consensus target price of $36.90, indicating a potential upside of 45.01%. Given Braze’s stronger consensus rating and higher probable upside, analysts plainly believe Braze is more favorable than 8X8.

Profitability

This table compares 8X8 and Braze’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%
Braze	-17.78%	-18.75%	-10.60%

Summary

8X8 beats Braze on 8 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 Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.