Critical Survey: Bandwidth (BAND) vs. BT Group (BT)
Bandwidth (NASDAQ: BAND) and BT Group (NYSE:BT) are both telecommunications services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
BT Group pays an annual dividend of $0.98 per share and has a dividend yield of 6.0%. Bandwidth does not pay a dividend. BT Group pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BT Group has raised its dividend for 6 consecutive years.
This table compares Bandwidth and BT Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bandwidth||$152.13 million||2.41||$22.35 million||$0.82||25.37|
|BT Group||$31.47 billion||1.03||$2.49 billion||$1.18||13.91|
BT Group has higher revenue and earnings than Bandwidth. BT Group is trading at a lower price-to-earnings ratio than Bandwidth, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.5% of Bandwidth shares are held by institutional investors. Comparatively, 0.9% of BT Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Bandwidth and BT Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Bandwidth and BT Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bandwidth currently has a consensus target price of $29.80, indicating a potential upside of 43.27%. BT Group has a consensus target price of $333.33, indicating a potential upside of 1,931.28%. Given BT Group’s higher possible upside, analysts clearly believe BT Group is more favorable than Bandwidth.
BT Group beats Bandwidth on 11 of the 15 factors compared between the two stocks.
Bandwidth Company Profile
Bandwidth Inc., formerly Bandwidth.com, Inc., is a cloud-based communications platform-as-a-service provider (CPaaS) that enables enterprises to create, scale and operate voice or text communications services across any mobile application or connected device or enterprises. The Company has two operating and reportable segments, CPaaS and Other. The Company’s solutions include a broad range of software APIs for voice and text functionality and IP voice network. The Company’s sophisticated and easy-to-use software APIs allow enterprises to enhance their products and services by incorporating advanced voice and text capabilities. The Company offers advanced monitoring, reporting and analytics, superior customer service, dedicated operating teams, and personalized support.
BT Group Company Profile
BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.
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