Comparing Bandwidth (BAND) and Intuit (INTU)

Bandwidth (NASDAQ: BAND) and Intuit (NASDAQ:INTU) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Bandwidth and Intuit’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
Intuit 20.39% 79.36% 25.63%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bandwidth and Intuit, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bandwidth 0 0 6 0 3.00
Intuit 3 5 10 0 2.39

Bandwidth currently has a consensus target price of $38.00, indicating a potential downside of 3.82%. Intuit has a consensus target price of $194.75, indicating a potential downside of 5.45%. Given Bandwidth’s stronger consensus rating and higher probable upside, analysts plainly believe Bandwidth is more favorable than Intuit.

Institutional & Insider Ownership

21.0% of Bandwidth shares are held by institutional investors. Comparatively, 87.3% of Intuit shares are held by institutional investors. 48.6% of Bandwidth shares are held by insiders. Comparatively, 5.6% of Intuit shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bandwidth $162.96 million 4.30 $5.97 million $0.49 80.63
Intuit $5.18 billion 10.21 $971.00 million $3.77 54.64

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

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 0.8%. Bandwidth does not pay a dividend. Intuit pays out 41.4% of its earnings in the form of a dividend.

Summary

Intuit beats Bandwidth on 10 of the 14 factors compared between the two stocks.

Bandwidth Company Profile

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provides in the United States. The company operates through two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or text communications services across mobile application or connected device. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, small and medium-sized businesses, technology companies, and other business. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.

Intuit Company Profile

Intuit Inc. provides financial management and compliance products and services for small businesses, consumers, self-employed, and accounting professionals in the United States and internationally. The company's Small Business segment provides small business payroll products and services, including QuickBooks Desktop software products, such as Desktop Pro, Desktop for Mac, Desktop Premier, and Enterprise; QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; QuickBooks Point of Sale solutions; ProAdvisor Program memberships for accounting professionals; and financial supplies. This segment also offers QuickBooks Online, and QuickBooks Self-Employed financial and business management offerings; QuickBooks Enterprise term licenses and QuickBooks technical support plans; small business payroll services, including QuickBooks Online Payroll, Intuit Online Payroll, QuickBooks Assisted Payroll, and Intuit Full Service Payroll; and payment processing services for small businesses. In addition, it provides merchant services, including credit and debit card, and gift card processing services; check verification and guarantee, and electronic check conversion; Web-based transaction processing services; and e-invoicing, which allows small businesses to email invoices directly from QuickBooks, as well as enables customers to pay online. Its Consumer segment provides TurboTax income tax preparation products and services; and electronic tax filing services. The company's ProConnect segment offers Lacerte, ProSeries, and ProFile desktop tax preparation software products; and ProConnect Tax online tax return preparation, bank products, and related services. It sells products and services through various sales and distribution channels, including Websites, promotions, call centers, retail display, and online mobile application stores, as well as through selected alliance partners and accountants. Intuit Inc. was founded in 1983 and is headquartered in Mountain View, California.

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