Financial Survey: 8X8 (NASDAQ:EGHT) & Tyler Technologies (NYSE:TYL)

8X8 (NASDAQ:EGHT) and Tyler Technologies (NYSE:TYL) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

8X8 has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares 8X8 and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
8X8	0.98%	32.17%	7.04%
Tyler Technologies	13.51%	12.21%	7.30%

Insider and Institutional Ownership

94.0% of 8X8 shares are held by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are held by institutional investors. 2.1% of 8X8 shares are held by company insiders. Comparatively, 1.1% of Tyler Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares 8X8 and Tyler Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$752.47 million	0.43	$1.65 million	$0.05	45.00
Tyler Technologies	$2.48 billion	6.90	$315.60 million	$7.94	54.27

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

Analyst Recommendations

This is a summary of recent recommendations for 8X8 and Tyler Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	1	1	2	0	2.25
Tyler Technologies	0	4	11	1	2.81

8X8 presently has a consensus target price of $3.12, suggesting a potential upside of 38.89%. Tyler Technologies has a consensus target price of $440.88, suggesting a potential upside of 2.32%. Given 8X8’s higher probable upside, equities analysts plainly believe 8X8 is more favorable than Tyler Technologies.

Summary

Tyler Technologies beats 8X8 on 10 of the 15 factors compared between the two stocks.

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.

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.