Orange (NYSE: ORAN) and Bandwidth (NASDAQ:BAND) are both telecommunications services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
This table compares Orange and Bandwidth’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Orange and Bandwidth, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bandwidth has a consensus price target of $31.00, indicating a potential upside of 7.53%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts clearly believe Bandwidth is more favorable than Orange.
Orange pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Bandwidth does not pay a dividend. Orange pays out 63.4% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Orange and Bandwidth’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orange||$46.45 billion||1.01||$2.15 billion||$0.82||21.49|
|Bandwidth||$162.96 million||3.12||$5.97 million||N/A||N/A|
Orange has higher revenue and earnings than Bandwidth.
Insider and Institutional Ownership
1.3% of Orange shares are held by institutional investors. Comparatively, 19.7% of Bandwidth shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Bandwidth beats Orange on 6 of the 9 factors compared between the two stocks.
Orange Company Profile
Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.
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.
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