Head to Head Contrast: PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) & Bandwidth (NASDAQ:BAND)

Bandwidth (NASDAQ:BAND) and PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Earnings and Valuation

This table compares Bandwidth and PT Telekomunikasi Indonesia, Tbk”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$828.24 million	1.72	-$12.91 million	($0.29)	-152.34
PT Telekomunikasi Indonesia, Tbk	$8.80 billion	1.37	$1.05 billion	$1.04	11.67

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

Profitability

This table compares Bandwidth and PT Telekomunikasi Indonesia, Tbk’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%
PT Telekomunikasi Indonesia, Tbk	11.62%	11.53%	5.86%

Insider and Institutional Ownership

68.5% of Bandwidth shares are owned by institutional investors. 5.3% of Bandwidth shares 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.

Analyst Recommendations

This is a breakdown of current recommendations for Bandwidth and PT Telekomunikasi Indonesia, Tbk, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	0	5	4	0	2.44
PT Telekomunikasi Indonesia, Tbk	1	1	0	0	1.50

Bandwidth currently has a consensus price target of $59.29, indicating a potential upside of 34.19%. Given Bandwidth’s stronger consensus rating and higher probable upside, analysts clearly believe Bandwidth is more favorable than PT Telekomunikasi Indonesia, Tbk.

Risk and Volatility

Bandwidth has a beta of 3.01, indicating that its stock price is 201% more volatile than the S&P 500. Comparatively, PT Telekomunikasi Indonesia, Tbk has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

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 PT Telekomunikasi Indonesia, Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.