8X8 (NASDAQ:EGHT) and DXC Technology (NYSE:DXC) Head to Head Survey

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

Valuation & Earnings

This table compares DXC Technology and 8X8″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXC Technology	$13.67 billion	0.27	$91.00 million	$0.34	60.30
8X8	$728.71 million	0.41	-$67.59 million	($0.50)	-4.64

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

Institutional and Insider Ownership

96.2% of DXC Technology shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 0.5% of DXC Technology shares are held by insiders. Comparatively, 1.2% of 8X8 shares are held by 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for DXC Technology and 8X8, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	7	0	0	1.78
8X8	2	2	3	0	2.14

DXC Technology presently has a consensus price target of $20.11, suggesting a potential downside of 1.90%. 8X8 has a consensus price target of $2.67, suggesting a potential upside of 14.94%. Given 8X8’s stronger consensus rating and higher probable upside, analysts clearly believe 8X8 is more favorable than DXC Technology.

Risk & Volatility

DXC Technology has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DXC Technology	0.60%	19.20%	4.39%
8X8	-8.65%	-6.51%	-0.88%

Summary

DXC Technology beats 8X8 on 9 of the 14 factors compared between the two stocks.

About DXC Technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain insights, automate operations, and accelerate their transformation journeys; and software engineering, consulting, and data analytics solutions, which enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. This segment also simplifies, modernize, and accelerate mission-critical applications that support business agility and growth through applications services; provides proprietary modular insurance software and platforms; and operates a wide spectrum of insurance business process services, as well as helps to operate and improve bank cards, payment and lending process and operations, and customer experiences. The GIS segment offers security services, such as IT security, operations and culture for migrating to the cloud, protecting data with a zero-trust strategy, and manage a security operation center; and cloud infrastructure and IT outsourcing services. This segment also delivers a consumer-like experience, centralize IT management, and support services, as well as improves the total cost of ownership; and orchestrates hybrid cloud and multicloud environments. The company markets and sells its products through direct sales force to commercial businesses and public sector enterprises. DXC Technology Company was founded in 1959 and is headquartered in Ashburn, Virginia.

About 8X8

8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small business, mid-market, enterprise customers, government agencies, and other organizations worldwide. It offers 8×8 Work, a self-contained end-to-end united communications solution that delivers voice services, secure video meetings, and unified messaging, including direct messages, public and private team messaging rooms, and peer-to-peer short and multimedia messaging; 8×8 Contact Center, a cloud-based contact center as-a-service solution; and 8×8 Engage, an artificial intelligence-powered solution that equips customer-facing employees outside the contact center with the tools and capabilities to deliver successful customer engagements. The company also provides 8×8 Communications Platform as-a-Service, a communications platform-as-a-service capabilities that enable businesses to directly integrate its platform services within their websites, mobile apps, and business systems for personalized customer engagement; and Solutions for Microsoft Teams. In addition, it offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. The company markets its services to end users through industry conferences, trade shows, webinars, and local and digital advertising channels. 8×8, Inc. was incorporated in 1987 and is headquartered in Campbell, California.