Analyzing Bandwidth (BAND) and Telefonica Brasil (VIV)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bandwidth and Telefonica Brasil, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bandwidth 0 0 5 0 3.00
Telefonica Brasil 0 4 1 0 2.20

Bandwidth presently has a consensus price target of $29.80, suggesting a potential upside of 39.58%. Telefonica Brasil has a consensus price target of $16.03, suggesting a potential downside of 1.09%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts clearly believe Bandwidth is more favorable than Telefonica Brasil.

Profitability

This table compares Bandwidth and Telefonica Brasil’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
Telefonica Brasil 10.00% 6.29% 4.23%

Dividends

Telefonica Brasil pays an annual dividend of $0.95 per share and has a dividend yield of 5.9%. Bandwidth does not pay a dividend. Telefonica Brasil pays out 123.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telefonica Brasil has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Bandwidth and Telefonica Brasil’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 2.47 $22.35 million N/A N/A
Telefonica Brasil $12.25 billion 2.24 $1.17 billion $0.77 21.05

Telefonica Brasil has higher revenue and earnings than Bandwidth.

Institutional & Insider Ownership

0.6% of Bandwidth shares are owned by institutional investors. Comparatively, 9.3% of Telefonica Brasil shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Telefonica Brasil beats Bandwidth on 8 of the 13 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.

Telefonica Brasil Company Profile

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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