Head to Head Analysis: CSG Systems International (NASDAQ:CSGS) and 8X8 (NASDAQ:EGHT)

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

Earnings and Valuation

This table compares CSG Systems International and 8X8’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSG Systems International $996.81 million 1.73 $82.77 million $3.04 17.21
8X8 $352.59 million 5.93 -$88.74 million ($0.69) -29.58

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

Insider & Institutional Ownership

95.2% of CSG Systems International shares are owned by institutional investors. Comparatively, 90.4% of 8X8 shares are owned by institutional investors. 1.9% of CSG Systems International shares are owned by insiders. Comparatively, 3.0% of 8X8 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
CSG Systems International 8.30% 25.84% 8.16%
8X8 -35.94% -49.59% -18.57%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSG Systems International 0 1 1 0 2.50
8X8 1 6 7 0 2.43

CSG Systems International currently has a consensus target price of $58.00, indicating a potential upside of 10.88%. 8X8 has a consensus target price of $24.11, indicating a potential upside of 18.14%. Given 8X8’s higher possible upside, analysts plainly believe 8X8 is more favorable than CSG Systems International.

Volatility and Risk

CSG Systems International has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, 8X8 has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Summary

CSG Systems International beats 8X8 on 10 of the 14 factors compared between the two stocks.

About CSG Systems International

CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers revenue management and digital monetization solutions, including Advanced Convergent Platform, a pre-integrated hybrid cloud-based platform; and Ascendon, Singleview, Total Service Mediation, and Wholesale Business Management Solution platforms. It also provides customer communications management solutions, such as field force automation, analytics, electronic bill presentment, ACH, etc. for processing voice, SMS/text, print, and email messages; and payment solutions, such as cloud-based integrated suite of products and solutions. In addition, the company offers managed services; and professional services to implement, configure, and maintain its products, as well as licenses products, such as mediation, partner management, rating, and charging. It serves the media, entertainment, government, insurance, and health care industries. The company was founded in 1994 and is headquartered in Greenwood Village, Colorado.

About 8X8

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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