8X8 (NASDAQ:EGHT) and CooTek (Cayman) (NYSE:CTK) Head-To-Head Review

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for 8X8 and CooTek (Cayman), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	2	2	4	0	2.25
CooTek (Cayman)	0	0	0	0	N/A

8X8 presently has a consensus price target of $2.93, suggesting a potential upside of 34.96%. Given 8X8’s higher probable upside, equities research analysts plainly believe 8X8 is more favorable than CooTek (Cayman).

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$723.57 million	0.38	-$67.59 million	($0.50)	-4.34
CooTek (Cayman)	$272.15 million	0.00	-$2.60 million	N/A	N/A

CooTek (Cayman) has lower revenue, but higher earnings than 8X8.

Insider and Institutional Ownership

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

Profitability

This table compares 8X8 and CooTek (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
8X8	-8.65%	-6.51%	-0.88%
CooTek (Cayman)	N/A	N/A	N/A

Volatility & Risk

8X8 has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, CooTek (Cayman) has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Summary

8X8 beats CooTek (Cayman) on 7 of the 11 factors compared between the two stocks.

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.

About CooTek (Cayman)

CooTek (Cayman) Inc. operates as a mobile internet company in the United States, the People's Republic of China, the United States, and internationally. Its primary product is TouchPal Smart Input, an input method for mobile devices that supports approximately 110 languages. The company also offers Fengdu Novel, a mobile application that provides users with free online novels; Fengdu Audiobooks; and short video series based on Fengdu Literature Platform content and IP resources. In addition, it provides casual games, including simulation games, such as Farm Hero and Idle Land King Tycoon; puzzle games comprising Hi Hamster; and educational games, such as Puzzle No. 1 and Idiom Hero. Further, the company offers fitness applications comprising Walk Walk; Drink Water Reminder that helps users drink an appropriate amount of water on a daily basis; Happy Jogging, a free pedometer mobile application; and Hailaidian, a mobile application that provides pictures, videos, and music to decorate the call interface and help users have fun when receiving phone calls. It distributes its products and acquires users primarily through user downloads from digital distribution platforms and pre-installations on mobile devices. CooTek (Cayman) Inc. was founded in 2008 and is headquartered in Shanghai, the People's Republic of China.