Contrasting Telenor ASA (OTCMKTS:TELNY) & Bandwidth (NASDAQ:BAND)
by Danessa Lincoln · The Markets DailyBandwidth (NASDAQ:BAND – Get Free Report) and Telenor ASA (OTCMKTS:TELNY – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Bandwidth and Telenor ASA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bandwidth | 0 | 3 | 5 | 0 | 2.62 |
| Telenor ASA | 1 | 3 | 0 | 1 | 2.20 |
Bandwidth presently has a consensus target price of $59.80, indicating a potential upside of 20.02%. Given Bandwidth’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bandwidth is more favorable than Telenor ASA.
Valuation & Earnings
This table compares Bandwidth and Telenor ASA”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bandwidth | $753.82 million | 2.13 | -$12.91 million | ($0.29) | -171.81 |
| Telenor ASA | $7.38 billion | 2.70 | $678.08 million | $0.98 | 14.85 |
Telenor ASA has higher revenue and earnings than Bandwidth. Bandwidth is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bandwidth and Telenor ASA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bandwidth | 0.27% | 1.85% | 0.70% |
| Telenor ASA | 17.19% | 15.27% | 5.20% |
Institutional and Insider Ownership
68.5% of Bandwidth shares are owned by institutional investors. 5.3% of Bandwidth shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Bandwidth has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500. Comparatively, Telenor ASA has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
Summary
Telenor ASA beats Bandwidth on 9 of the 15 factors compared between the two stocks.
About Bandwidth
Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth’s APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.
About Telenor ASA
Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.