8x8 Inc (EGHT) vs Ribbon Communications Inc. (RBBN)

8x8 Inc and Ribbon Communications Inc. are both Software Application companies. 8x8 Inc and Ribbon Communications Inc. are of similar size ($329.3M and $325.5M). Ribbon Communications Inc. trades at the lower P/E: 20.0× against 64.6×. 8x8 Inc grew revenue faster over the last twelve months: 3.66% against −7.62%. Ribbon Communications Inc. has the higher net margin (1.96% vs 0.64%) and the lower return on invested capital (−2.94% vs 3.92%). Across the 22 metrics below, 8x8 Inc leads on 12 and Ribbon Communications Inc. on 10.

Valuation

Metric EGHT RBBN Software Application median
P/E 64.61 20.00 24.79
P/S 0.44 0.40 2.67
P/B 2.21 0.81 3.01
Price to free cash flow 7.03 46.93 16.59
EV/EBITDA 6.17 19.71 14.40
EV/Sales 0.73 0.76 2.62
Earnings yield 1.55% 5.00% 0.00%
Free cash flow yield 14.23% 2.13% 1.91%

Profitability

Metric EGHT RBBN Software Application median
Gross margin 63.26% 48.78% 67.03%
Operating margin 3.06% (3.99%) 0.00%
Net margin 0.64% 1.96% 0.00%
Free cash flow margin 6.24% 0.85% 4.32%
Return on equity 3.45% 4.09% 0.00%
Return on assets 0.70% 1.37% 0.00%
Return on invested capital 3.92% (2.94%) 0.00%

Growth

Metric EGHT RBBN Software Application median
Revenue growth (TTM) 3.66% (7.62%) 12.40%
EPS growth (last fiscal year) 104.76% 170.97% —
Revenue growth, 5-year CAGR 6.69% 0.02% 13.72%
Net income growth, 5-year CAGR 0.00% (14.86%) 0.00%

Health

Metric EGHT RBBN Software Application median
Debt to equity 2.08 0.84 0.02
Current ratio 1.05 1.31 1.55
Net debt to EBITDA 2.64 3.89 0.06

Dividend

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

Size

Metric EGHT RBBN Software Application median
Market cap 329.31m 325.46m 396.11m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack