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

Valuation & Earnings

This table compares Bandwidth and Black Box’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bandwidth $152.13 million 2.67 $22.35 million $0.82 28.11
Black Box $855.70 million 0.06 -$7.05 million ($1.43) -2.55

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

Analyst Ratings

This is a summary of current ratings and target prices for Bandwidth and Black Box, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bandwidth 0 0 5 0 3.00
Black Box 0 1 0 0 2.00

Bandwidth currently has a consensus price target of $29.80, suggesting a potential upside of 29.28%. Black Box has a consensus price target of $10.00, suggesting a potential upside of 173.97%. Given Black Box’s higher possible upside, analysts plainly believe Black Box is more favorable than Bandwidth.

Profitability

This table compares Bandwidth and Black Box’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
Black Box -2.69% -2.71% -0.86%

Institutional & Insider Ownership

73.9% of Black Box shares are held by institutional investors. 3.7% of Black Box shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Black Box pays an annual dividend of $0.24 per share and has a dividend yield of 6.6%. Bandwidth does not pay a dividend. Black Box pays out -16.8% of its earnings in the form of a dividend.

Summary

Bandwidth beats Black Box on 9 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.

Black Box Company Profile

Black Box Corporation is a technology solutions provider. The Company is engaged in designing, building, managing and securing the information technology (IT) infrastructure. Offerings under the Company’s Products platform include IT infrastructure, specialty networking, multimedia and keyboard/video/mouse (KVM) switching. Offerings under its Services platform include unified communications, data infrastructure and managed services. It conducts business globally and manages its business on a geographic-service type basis consisting of four segments: North America Products, North America Services, International Products and International Services. The offerings of its Products platform are distributed through value-added resellers, direct marketing manufacturers, mass merchandisers, Web retailers and others. The offerings of its Services platform are distributed through value-added resellers, manufacturers and large system integrators, among others.

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