Head to Head Survey: Magnite (NASDAQ:MGNI) & 8X8 (NASDAQ:EGHT)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnite	$713.95 million	2.69	$144.61 million	$0.94	14.24
8X8	$715.07 million	0.47	-$27.21 million	($0.02)	-121.00

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

Insider and Institutional Ownership

73.4% of Magnite shares are owned by institutional investors. Comparatively, 94.0% of 8X8 shares are owned by institutional investors. 3.8% of Magnite shares are owned by insiders. Comparatively, 2.0% of 8X8 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnite	20.25%	8.44%	2.34%
8X8	-0.53%	20.12%	3.92%

Risk & Volatility

Magnite has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Magnite and 8X8, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnite	0	2	9	0	2.82
8X8	1	1	2	0	2.25

Magnite currently has a consensus price target of $24.10, suggesting a potential upside of 79.99%. 8X8 has a consensus price target of $2.55, suggesting a potential upside of 5.37%. Given Magnite’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Magnite is more favorable than 8X8.

Summary

Magnite beats 8X8 on 10 of the 14 factors compared between the two stocks.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 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.