Analyzing 8X8 (NASDAQ:EGHT) & TaskUs (NASDAQ:TASK)

TaskUs (NASDAQ:TASK) and 8X8 (NASDAQ:EGHT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Risk and Volatility

TaskUs has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TaskUs	5.58%	17.73%	9.17%
8X8	-6.33%	-1.45%	-0.21%

Institutional & Insider Ownership

44.6% of TaskUs shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 29.3% of TaskUs shares are held by company insiders. Comparatively, 1.2% of 8X8 shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$994.99 million	1.12	$45.69 million	$0.51	24.18
8X8	$717.44 million	0.30	-$67.59 million	($0.36)	-4.58

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for TaskUs and 8X8, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	1	2	4	0	2.43
8X8	3	2	3	0	2.00

TaskUs currently has a consensus price target of $17.86, suggesting a potential upside of 44.83%. 8X8 has a consensus price target of $2.99, suggesting a potential upside of 80.95%. Given 8X8’s higher possible upside, analysts plainly believe 8X8 is more favorable than TaskUs.

Summary

TaskUs beats 8X8 on 12 of the 14 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, 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.