Analyzing Phunware (NASDAQ:PHUN) & 8X8 (NASDAQ:EGHT)

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

Valuation and Earnings

This table compares 8X8 and Phunware”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$717.44 million	0.39	-$67.59 million	($0.36)	-5.94
Phunware	$3.54 million	16.31	-$52.78 million	N/A	N/A

Phunware has lower revenue, but higher earnings than 8X8.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
8X8	-6.33%	-1.45%	-0.21%
Phunware	-867.61%	-244.22%	-119.14%

Analyst Recommendations

This is a breakdown of current ratings and price targets for 8X8 and Phunware, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	3	2	3	0	2.00
Phunware	0	1	1	0	2.50

8X8 currently has a consensus price target of $2.99, suggesting a potential upside of 39.52%. Phunware has a consensus price target of $9.50, suggesting a potential upside of 232.17%. Given Phunware’s stronger consensus rating and higher probable upside, analysts clearly believe Phunware is more favorable than 8X8.

Insider & Institutional Ownership

94.0% of 8X8 shares are held by institutional investors. Comparatively, 7.6% of Phunware shares are held by institutional investors. 1.2% of 8X8 shares are held by insiders. Comparatively, 1.2% of Phunware shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

8X8 has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Phunware has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.

Summary

8X8 beats Phunware on 7 of the 12 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 Phunware

Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, Texas.