TELUS (NYSE: TU) and 8X8 (NASDAQ:EGHT) are both telecommunications services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Institutional & Insider Ownership
55.1% of TELUS shares are owned by institutional investors. Comparatively, 71.6% of 8X8 shares are owned by institutional investors. 4.4% of 8X8 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares TELUS and 8X8’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TELUS||$10.26 billion||2.12||$1.13 billion||$1.94||18.88|
|8X8||$253.39 million||6.69||-$4.75 million||($0.78)||-23.59|
TELUS has higher revenue and earnings than 8X8. 8X8 is trading at a lower price-to-earnings ratio than TELUS, indicating that it is currently the more affordable of the two stocks.
TELUS pays an annual dividend of $1.61 per share and has a dividend yield of 4.4%. 8X8 does not pay a dividend. TELUS pays out 83.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TELUS has raised its dividend for 2 consecutive years.
This is a summary of current recommendations for TELUS and 8X8, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TELUS currently has a consensus target price of $46.17, indicating a potential upside of 26.04%. 8X8 has a consensus target price of $18.89, indicating a potential upside of 2.66%. Given TELUS’s stronger consensus rating and higher possible upside, equities analysts clearly believe TELUS is more favorable than 8X8.
This table compares TELUS and 8X8’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
TELUS has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
TELUS beats 8X8 on 12 of the 16 factors compared between the two stocks.
TELUS Company Profile
TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.
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.
Receive News & Ratings for TELUS Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TELUS and related companies with MarketBeat.com's FREE daily email newsletter.