Telenor ASA (OTCMKTS:TELNY) & Bandwidth (NASDAQ:BAND) Financial Review

Telenor ASA (OTCMKTS:TELNY) and Bandwidth (NASDAQ:BAND) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Earnings & Valuation

This table compares Telenor ASA and Bandwidth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telenor ASA	$7.38 billion	2.60	$678.08 million	$0.98	14.30
Bandwidth	$753.82 million	2.32	-$12.91 million	($0.29)	-187.28

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

Institutional & Insider 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Telenor ASA and Bandwidth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	17.19%	15.27%	5.20%
Bandwidth	0.27%	1.85%	0.70%

Volatility & Risk

Telenor ASA has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, Bandwidth has a beta of 3.03, meaning that its stock price is 203% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Telenor ASA and Bandwidth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	1	3	0	1	2.20
Bandwidth	0	4	4	0	2.50

Bandwidth has a consensus target price of $59.83, indicating a potential upside of 10.17%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts clearly believe Bandwidth is more favorable than Telenor ASA.

Summary

Telenor ASA beats Bandwidth on 9 of the 15 factors compared between the two stocks.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.

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.