Reviewing 8X8 (NASDAQ:EGHT) and HeartCore Enterprises (NASDAQ:HTCR)

HeartCore Enterprises (NASDAQ:HTCR) and 8X8 (NASDAQ:EGHT) 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 profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

HeartCore Enterprises has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Insider and Institutional Ownership

1.7% of HeartCore Enterprises shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 64.2% of HeartCore Enterprises shares are held by insiders. Comparatively, 1.2% of 8X8 shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares HeartCore Enterprises and 8X8’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	16.25%	65.33%	22.92%
8X8	-6.33%	-1.45%	-0.21%

Analyst Recommendations

This is a summary of recent ratings for HeartCore Enterprises and 8X8, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartCore Enterprises	0	0	0	0	0.00
8X8	3	2	3	0	2.00

8X8 has a consensus target price of $2.99, suggesting a potential upside of 73.59%. Given 8X8’s stronger consensus rating and higher probable upside, analysts clearly believe 8X8 is more favorable than HeartCore Enterprises.

Earnings & Valuation

This table compares HeartCore Enterprises and 8X8″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$30.41 million	0.49	-$4.19 million	($0.06)	-11.23
8X8	$717.44 million	0.32	-$67.59 million	($0.36)	-4.78

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

Summary

HeartCore Enterprises beats 8X8 on 9 of the 14 factors compared between the two stocks.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.

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.