Head-To-Head Review: 8×8 (EGHT) and ATN International (ATNI)

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

Dividends

ATN International pays an annual dividend of $1.36 per share and has a dividend yield of 2.3%. 8×8 does not pay a dividend. ATN International pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 8×8 has raised its dividend for 15 consecutive years.

Profitability

This table compares 8×8 and ATN International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
8×8 -2.44% 1.38% 1.20%
ATN International 4.29% 2.74% 1.87%

Earnings & Valuation

This table compares 8×8 and ATN International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
8×8 $262.45 million 4.62 -$391,000.00 ($0.06) -220.00
ATN International $518.69 million 1.82 $159.87 million $1.36 42.96

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

Insider & Institutional Ownership

70.2% of 8×8 shares are held by institutional investors. Comparatively, 59.3% of ATN International shares are held by institutional investors. 4.4% of 8×8 shares are held by insiders. Comparatively, 32.7% of ATN International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

8×8 has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for 8×8 and ATN International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
8×8 0 4 6 0 2.60
ATN International 0 1 1 0 2.50

8×8 currently has a consensus target price of $17.44, suggesting a potential upside of 32.15%. ATN International has a consensus target price of $57.00, suggesting a potential downside of 2.45%. Given 8×8’s stronger consensus rating and higher probable upside, equities analysts clearly believe 8×8 is more favorable than ATN International.

Summary

ATN International beats 8×8 on 9 of the 16 factors compared between the two stocks.

About 8×8

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.

About ATN International

ATN International, Inc. (ATN), formerly Atlantic Tele-Network, Inc., is a holding company. The Company’s segments include U.S. Telecom, International Telecom and Renewable Energy. In the United States, it provides wholesale wireless voice and data roaming services in rural markets to national, regional, local and selected international wireless carriers. Its wholesale networks are located principally in the western United States. It provides wireless voice and data service to retail and business customers in Bermuda under the One name, in Guyana under the GTT name and in the United States Virgin Islands under the Innovative and Choice brand names. The Company offers voice services that include local exchange, regional and long distance calling and voice messaging services in Bermuda, Guyana, the United States Virgin Islands, and in other smaller markets in the Caribbean and the United States. It offers services, which include Wireless, Wireline and Renewable Energy.

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