N-able (NYSE:NABL) and 8X8 (NASDAQ:EGHT) Critical Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
8X8	0.64%	28.72%	6.14%
N-able	-0.88%	3.55%	2.04%

Earnings & Valuation

This table compares 8X8 and N-able”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$735.75 million	0.35	$1.65 million	$0.04	44.88
N-able	$511.43 million	1.45	-$18.82 million	($0.02)	-196.25

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

Volatility and Risk

8X8 has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, N-able has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Insider and Institutional Ownership

94.0% of 8X8 shares are owned by institutional investors. Comparatively, 96.3% of N-able shares are owned by institutional investors. 2.1% of 8X8 shares are owned by insiders. Comparatively, 2.0% of N-able shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for 8X8 and N-able, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	1	1	2	0	2.25
N-able	2	4	2	0	2.00

8X8 currently has a consensus price target of $3.12, suggesting a potential upside of 74.09%. N-able has a consensus price target of $5.08, suggesting a potential upside of 29.43%. Given 8X8’s stronger consensus rating and higher probable upside, equities analysts plainly believe 8X8 is more favorable than N-able.

Summary

8X8 beats N-able on 11 of the 13 factors compared between the two stocks.

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.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.