Analyzing Bandwidth (BAND) & Its Peers

Bandwidth (NASDAQ:BAND) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it compare to its peers? We will compare Bandwidth to similar companies based on the strength of its dividends, institutional ownership, risk, profitability, analyst recommendations, valuation and earnings.

Institutional & Insider Ownership

68.5% of Bandwidth shares are owned by institutional investors. Comparatively, 32.8% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 5.3% of Bandwidth shares are owned by company insiders. Comparatively, 18.3% of shares of all “Diversified Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Bandwidth and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bandwidth	$870.37 million	-$12.91 million	-364.67
Bandwidth Competitors	$24.31 billion	$893.66 million	-169.25

Bandwidth’s peers have higher revenue and earnings than Bandwidth. Bandwidth is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bandwidth and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	0	5	4	0	2.44
Bandwidth Competitors	1764	5375	7775	385	2.44

Bandwidth currently has a consensus target price of $66.67, indicating a potential upside of 52.35%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 20.50%. Given Bandwidth’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Bandwidth is more favorable than its peers.

Risk & Volatility

Bandwidth has a beta of 3.17, suggesting that its share price is 217% more volatile than the S&P 500. Comparatively, Bandwidth’s peers have a beta of -4.82, suggesting that their average share price is 582% less volatile than the S&P 500.

Profitability

This table compares Bandwidth and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bandwidth	1.01%	3.70%	1.37%
Bandwidth Competitors	-10.40%	-215.25%	-3.43%

Summary

Bandwidth beats its peers on 7 of the 13 factors compared.

About Bandwidth

Bandwidth is a cloud communications company that provides software and network services for businesses, communications providers and software developers. Its platform enables organizations to add voice calling, messaging and emergency calling capabilities to their applications and services. The company offers communications APIs, business voice and messaging solutions, and services for managing phone numbers and emergency communications. Bandwidth’s network infrastructure supports these offerings and helps customers connect communications features with their existing systems.