Bandwidth (NASDAQ:BAND – Get Free Report) and Swisscom (OTCMKTS:SCMWY – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Profitability
This table compares Bandwidth and Swisscom’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% |
| Swisscom | 8.86% | 11.31% | 3.72% |
Analyst Ratings
This is a summary of recent ratings for Bandwidth and Swisscom, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bandwidth | 0 | 4 | 4 | 0 | 2.50 |
| Swisscom | 3 | 5 | 0 | 0 | 1.62 |
Bandwidth currently has a consensus target price of $59.83, indicating a potential upside of 23.90%. Given Bandwidth’s stronger consensus rating and higher probable upside, research analysts plainly believe Bandwidth is more favorable than Swisscom.
Valuation & Earnings
This table compares Bandwidth and Swisscom”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bandwidth | $828.24 million | 1.88 | -$12.91 million | ($0.29) | -166.52 |
| Swisscom | $18.16 billion | 22.65 | $1.53 billion | $3.20 | 24.81 |
Swisscom has higher revenue and earnings than Bandwidth. Bandwidth is trading at a lower price-to-earnings ratio than Swisscom, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
68.5% of Bandwidth shares are held by institutional investors. 5.3% of Bandwidth shares are held by company insiders. Comparatively, 1.0% of Swisscom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Bandwidth has a beta of 3.01, meaning that its stock price is 201% more volatile than the S&P 500. Comparatively, Swisscom has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.
Summary
Swisscom beats Bandwidth on 8 of the 14 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 Swisscom
Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such as telephony, TV, broadband, and mobile offerings, as well as sells terminal equipment; and telecom and communications solutions for large corporations and small and medium-sized enterprises. It also provides cloud, outsourcing, workplace, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed-line and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, the company plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband and mobile services, such as telephony, mobile offerings, and broadband services, as well as ICT solutions for residential, business, and wholesale customers. Further, it provides IT and network services; online and telephone directories; and cross-platform retail media and security communication services, as well as builds and maintains wired and wireless networks. The company was founded in 1998 and is based in Bern, Switzerland.
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