Telenor ASA (OTCMKTS:TELNY – Get Free Report) and Bandwidth (NASDAQ:BAND – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for Telenor ASA and Bandwidth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telenor ASA | 1 | 3 | 0 | 1 | 2.20 |
| Bandwidth | 0 | 3 | 5 | 0 | 2.62 |
Bandwidth has a consensus target price of $59.80, suggesting a potential upside of 20.02%. Given Bandwidth’s stronger consensus rating and higher probable upside, analysts clearly believe Bandwidth is more favorable than Telenor ASA.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telenor ASA | $7.38 billion | 2.70 | $678.08 million | $0.98 | 14.85 |
| Bandwidth | $753.82 million | 2.13 | -$12.91 million | ($0.29) | -171.81 |
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.
Risk & Volatility
Telenor ASA has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Bandwidth has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500.
Profitability
This table compares Telenor ASA and Bandwidth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telenor ASA | 17.19% | 15.27% | 5.20% |
| Bandwidth | 0.27% | 1.85% | 0.70% |
Institutional and Insider Ownership
68.5% of Bandwidth shares are held by institutional investors. 5.3% of Bandwidth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Telenor ASA beats Bandwidth on 9 of the 15 factors compared between the two stocks.
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.
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.
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