Contrasting Cheer (NASDAQ:CHR) & 8X8 (NASDAQ:EGHT)

Cheer (NASDAQ:CHR) 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 analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheer	N/A	N/A	N/A
8X8	-8.65%	-6.51%	-0.88%

Analyst Recommendations

This is a summary of recent recommendations for Cheer and 8X8, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheer	0	0	0	0	N/A
8X8	2	1	3	0	2.17

8X8 has a consensus price target of $2.83, indicating a potential upside of 60.98%. Given 8X8’s higher probable upside, analysts clearly believe 8X8 is more favorable than Cheer.

Insider and Institutional Ownership

18.5% of Cheer shares are owned by institutional investors. Comparatively, 94.0% of 8X8 shares are owned by institutional investors. 41.7% of Cheer shares are owned by company insiders. Comparatively, 1.1% of 8X8 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Cheer has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cheer and 8X8’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheer	$155.95 million	0.15	$30.48 million	N/A	N/A
8X8	$723.57 million	0.30	-$67.59 million	($0.55)	-3.20

Cheer has higher earnings, but lower revenue than 8X8.

Summary

8X8 beats Cheer on 6 of the 11 factors compared between the two stocks.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

About 8X8

8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small business, mid-market, enterprise customers, government agencies, and other organizations worldwide. It offers 8×8 Work, a self-contained end-to-end united communications solution that delivers voice services, secure video meetings, and unified messaging, including direct messages, public and private team messaging rooms, and peer-to-peer short and multimedia messaging; 8×8 Contact Center, a cloud-based contact center as-a-service solution; and 8×8 Engage, an artificial intelligence-powered solution that equips customer-facing employees outside the contact center with the tools and capabilities to deliver successful customer engagements. The company also provides 8×8 Communications Platform as-a-Service, a communications platform-as-a-service capabilities that enable businesses to directly integrate its platform services within their websites, mobile apps, and business systems for personalized customer engagement; and Solutions for Microsoft Teams. In addition, it offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. The company markets its services to end users through industry conferences, trade shows, webinars, and local and digital advertising channels. 8×8, Inc. was incorporated in 1987 and is headquartered in Campbell, California.