Braze (NASDAQ:BRZE – Get Free Report) and 8X8 (NASDAQ:EGHT – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Profitability
This table compares Braze and 8X8’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Braze | -15.51% | -17.52% | -9.88% |
| 8X8 | 0.22% | 25.77% | 5.30% |
Insider and Institutional Ownership
90.5% of Braze shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 12.5% of Braze shares are held by company insiders. Comparatively, 2.0% of 8X8 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Braze | $738.18 million | 4.34 | -$131.29 million | ($1.12) | -25.24 |
| 8X8 | $735.75 million | 0.44 | $1.65 million | $0.02 | 114.50 |
8X8 has lower revenue, but higher earnings than Braze. Braze is trading at a lower price-to-earnings ratio than 8X8, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Braze has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Braze and 8X8, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Braze | 1 | 1 | 22 | 0 | 2.88 |
| 8X8 | 1 | 1 | 1 | 0 | 2.00 |
Braze presently has a consensus price target of $36.14, suggesting a potential upside of 27.85%. 8X8 has a consensus price target of $2.45, suggesting a potential upside of 6.99%. Given Braze’s stronger consensus rating and higher possible upside, analysts clearly believe Braze is more favorable than 8X8.
Summary
8X8 beats Braze on 8 of the 14 factors compared between the two stocks.
About Braze
Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.
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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