Critical Analysis: Everbridge (EVBG) vs. Bandwidth (BAND)

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

Insider and Institutional Ownership

89.1% of Everbridge shares are owned by institutional investors. Comparatively, 29.9% of Bandwidth shares are owned by institutional investors. 11.2% of Everbridge shares are owned by company insiders. Comparatively, 48.6% of Bandwidth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Everbridge and Bandwidth, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everbridge 0 0 9 0 3.00
Bandwidth 0 1 5 0 2.83

Everbridge presently has a consensus target price of $53.00, suggesting a potential upside of 3.41%. Bandwidth has a consensus target price of $41.67, suggesting a potential downside of 19.09%. Given Everbridge’s stronger consensus rating and higher possible upside, equities analysts clearly believe Everbridge is more favorable than Bandwidth.

Profitability

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

Net Margins Return on Equity Return on Assets
Everbridge -31.96% -64.53% -16.15%
Bandwidth 9.58% 13.25% 7.62%

Earnings and Valuation

This table compares Everbridge and Bandwidth’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everbridge $104.35 million 14.43 -$19.63 million ($0.57) -89.91
Bandwidth $162.96 million 5.95 $5.97 million $0.49 105.10

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

Summary

Bandwidth beats Everbridge on 8 of the 13 factors compared between the two stocks.

About Everbridge

Everbridge, Inc. operates as a software company in the United States, Sweden, England, and China. The company offers Critical Event Management, a SaaS-based platform with various software applications that address tasks an organization has to perform to manage a critical event, including Mass Notification, which enables enterprises and governmental entities to send notifications to individuals or groups to keep them informed before, during, and after natural or man-made disasters, and other emergencies; Safety Connection that enables organizations to send notifications based on last known location of an individual; Incident Management, which enables organizations to automate workflows and make their communications relevant; and IT Alerting that enables IT professionals to alert and communicate with members of their teams during an IT incident or outage. Its software applications also include Visual Command Center, which enables customers to monitor and integrate threat data, as well as information on internal incidents; Community Engagement that integrates emergency management and community outreach; Crisis Commander, which provides mobile access to crisis, recovery, and brand protection plans, as well as the capability to manage a crisis or event; and Secure Messaging that offers an alternative way for organization's employees to communicate and share nonpublic information. The company also provides customer support services. It serves enterprises, small businesses, non-profit organizations, educational institutions, and government agencies in technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, higher education, and professional services industries. The company was formerly known as 3n Global, Inc. and changed its name to Everbridge, Inc. in April 2009. Everbridge, Inc. was founded in 2002 and is headquartered in Burlington, Massachusetts.

About Bandwidth

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.

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