Cerence Inc. (CRNC) vs 8x8 Inc (EGHT)

Cerence Inc. and 8x8 Inc are both Software Application companies. Cerence Inc. and 8x8 Inc are of similar size ($358.7M and $329.3M). Cerence Inc. has negative trailing earnings, so its P/E is not meaningful; 8x8 Inc trades at 64.6×. Cerence Inc. grew revenue faster over the last twelve months: 25.8% against 3.66%. 8x8 Inc has the higher net margin (0.64% vs −4.97%) and the lower return on invested capital (3.92% vs 7.95%). Across the 20 metrics below, Cerence Inc. leads on 10 and 8x8 Inc on 10.

Valuation

Metric CRNC EGHT Software Application median
P/E n/m 64.61 24.79
P/S 1.16 0.44 2.67
P/B 2.16 2.21 3.01
Price to free cash flow 4.57 7.03 16.59
EV/EBITDA 12.63 6.17 14.40
EV/Sales 1.50 0.73 2.62
Earnings yield (4.53%) 1.55% 0.00%
Free cash flow yield 21.89% 14.23% 1.91%

Profitability

Metric CRNC EGHT Software Application median
Gross margin 78.69% 63.26% 67.03%
Operating margin 8.72% 3.06% 0.00%
Net margin (4.97%) 0.64% 0.00%
Free cash flow margin 25.41% 6.24% 4.32%
Return on equity (9.56%) 3.45% 0.00%
Return on assets (2.45%) 0.70% 0.00%
Return on invested capital 7.95% 3.92% 0.00%

Growth

Metric CRNC EGHT Software Application median
Revenue growth (TTM) 25.84% 3.66% 12.40%
EPS growth (last fiscal year) 96.95% 104.76% —
Revenue growth, 5-year CAGR (5.32%) 6.69% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRNC EGHT Software Application median
Debt to equity 1.04 2.08 0.02
Current ratio 2.08 1.05 1.55
Net debt to EBITDA 13.59 2.64 0.06

Dividend

Metric CRNC EGHT Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric CRNC EGHT Software Application median
Market cap 358.68m 329.31m 396.11m

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