Tyler Technologies (NYSE:TYL – Get Free Report) and 8X8 (NASDAQ:EGHT – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Profitability
This table compares Tyler Technologies and 8X8’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tyler Technologies | 13.51% | 12.21% | 7.30% |
| 8X8 | 0.64% | 28.72% | 6.14% |
Institutional & Insider Ownership
93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 1.1% of Tyler Technologies shares are held by insiders. Comparatively, 2.1% 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.
Earnings and Valuation
This table compares Tyler Technologies and 8X8″s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tyler Technologies | $2.33 billion | 6.72 | $315.60 million | $7.94 | 49.65 |
| 8X8 | $735.75 million | 0.41 | $1.65 million | $0.04 | 52.25 |
Tyler Technologies has higher revenue and earnings than 8X8. Tyler Technologies is trading at a lower price-to-earnings ratio than 8X8, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Tyler Technologies and 8X8, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tyler Technologies | 0 | 4 | 11 | 1 | 2.81 |
| 8X8 | 1 | 1 | 2 | 0 | 2.25 |
Tyler Technologies presently has a consensus price target of $438.53, suggesting a potential upside of 11.23%. 8X8 has a consensus price target of $3.12, suggesting a potential upside of 49.52%. Given 8X8’s higher probable upside, analysts clearly believe 8X8 is more favorable than Tyler Technologies.
Risk and Volatility
Tyler Technologies has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Summary
Tyler Technologies beats 8X8 on 9 of the 15 factors compared between the two stocks.
About Tyler Technologies
Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, 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.
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