Reviewing Bandwidth (NASDAQ:BAND) and America Movil (NYSE:AMX)

Bandwidth (NASDAQ:BAND) and America Movil (NYSE:AMX) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares Bandwidth and America Movil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$753.82 million	1.83	-$12.91 million	($0.12)	-358.08
America Movil	$49.22 billion	1.51	$4.61 billion	$1.73	14.30

America Movil has higher revenue and earnings than Bandwidth. Bandwidth is trading at a lower price-to-earnings ratio than America Movil, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Bandwidth has a beta of 3.01, suggesting that its stock price is 201% more volatile than the S&P 500. Comparatively, America Movil has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Bandwidth and America Movil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	1	4	4	0	2.33
America Movil	0	3	4	2	2.89

Bandwidth currently has a consensus price target of $66.67, indicating a potential upside of 55.15%. America Movil has a consensus price target of $29.43, indicating a potential upside of 18.99%. Given Bandwidth’s higher probable upside, research analysts plainly believe Bandwidth is more favorable than America Movil.

Institutional & Insider Ownership

68.5% of Bandwidth shares are owned by institutional investors. Comparatively, 6.3% of America Movil shares are owned by institutional investors. 5.3% of Bandwidth shares are owned by insiders. Comparatively, 1.0% of America Movil shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Bandwidth and America Movil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bandwidth	0.27%	1.85%	0.70%
America Movil	9.38%	21.07%	5.03%

Summary

America Movil beats Bandwidth on 8 of the 14 factors compared between the two stocks.

About Bandwidth

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth’s APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.

About America Movil

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.