Orange (NYSE: ORAN) and 8X8 (NASDAQ:EGHT) are both telecommunications services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Volatility and Risk
Orange has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.
1.2% of Orange 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 insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Orange and 8X8’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orange||$45.29 billion||1.03||$3.25 billion||$0.20||87.65|
|8X8||$253.39 million||5.28||-$4.75 million||($0.08)||-181.88|
Orange has higher revenue and earnings than 8X8. 8X8 is trading at a lower price-to-earnings ratio than Orange, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Orange and 8X8, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
8X8 has a consensus price target of $17.44, suggesting a potential upside of 19.89%. Given 8X8’s stronger consensus rating and higher possible upside, analysts plainly believe 8X8 is more favorable than Orange.
This table compares Orange and 8X8’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Orange pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. 8X8 does not pay a dividend. Orange pays out 260.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
8X8 beats Orange on 9 of the 16 factors compared between the two stocks.
Orange Company Profile
Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.
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.
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