Contrasting Phunware (NASDAQ:PHUN) and 8X8 (NASDAQ:EGHT)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phunware	$3.54 million	17.85	-$52.78 million	N/A	N/A
8X8	$717.44 million	0.42	-$67.59 million	($0.36)	-6.39

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

Insider and Institutional Ownership

7.6% of Phunware shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 1.2% of Phunware 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, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phunware	0	1	2	0	2.67
8X8	3	2	3	0	2.00

Phunware currently has a consensus target price of $13.00, indicating a potential upside of 315.34%. 8X8 has a consensus target price of $2.99, indicating a potential upside of 29.81%. Given Phunware’s stronger consensus rating and higher possible upside, analysts clearly believe Phunware is more favorable than 8X8.

Profitability

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

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

Risk & Volatility

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

Summary

8X8 beats Phunware on 7 of the 12 factors compared between the two stocks.

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.

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.