Bandwidth (NASDAQ: BAND) and IDT (NYSE:IDT) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bandwidth and IDT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bandwidth 0 0 5 0 3.00
IDT 0 0 0 0 N/A

Bandwidth presently has a consensus price target of $29.80, indicating a potential upside of 44.31%. Given Bandwidth’s higher possible upside, analysts clearly believe Bandwidth is more favorable than IDT.

Profitability

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

Net Margins Return on Equity Return on Assets
Bandwidth N/A N/A N/A
IDT -1.03% 7.49% 2.31%

Insider & Institutional Ownership

52.7% of IDT shares are held by institutional investors. 21.8% of IDT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

IDT pays an annual dividend of $0.76 per share and has a dividend yield of 6.8%. Bandwidth does not pay a dividend. IDT pays out -115.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Bandwidth and IDT’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 2.39 $22.35 million N/A N/A
IDT $1.50 billion 0.18 $8.17 million ($0.66) -16.88

Bandwidth has higher earnings, but lower revenue than IDT.

Summary

IDT beats Bandwidth on 7 of the 12 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.

IDT Company Profile

IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.

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