Bandwidth (NASDAQ:BAND – Get Free Report) and Chunghwa Telecom (NYSE:CHT – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Analyst Recommendations
This is a summary of recent ratings and price targets for Bandwidth and Chunghwa Telecom, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bandwidth | 1 | 4 | 4 | 0 | 2.33 |
| Chunghwa Telecom | 0 | 2 | 0 | 0 | 2.00 |
Bandwidth presently has a consensus price target of $66.67, suggesting a potential upside of 76.37%. Given Bandwidth’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Bandwidth is more favorable than Chunghwa Telecom.
Institutional and Insider Ownership
68.5% of Bandwidth shares are held by institutional investors. Comparatively, 2.1% of Chunghwa Telecom shares are held by institutional investors. 5.3% of Bandwidth shares are held by insiders. Comparatively, 1.0% of Chunghwa Telecom shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Bandwidth has a beta of 3.17, indicating that its share price is 217% more volatile than the S&P 500. Comparatively, Chunghwa Telecom has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
Profitability
This table compares Bandwidth and Chunghwa Telecom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bandwidth | 1.01% | 3.70% | 1.37% |
| Chunghwa Telecom | 16.58% | 10.61% | 7.73% |
Earnings and Valuation
This table compares Bandwidth and Chunghwa Telecom”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bandwidth | $753.82 million | 1.61 | -$12.91 million | ($0.12) | -315.00 |
| Chunghwa Telecom | $7.58 billion | 4.99 | $1.23 billion | $1.65 | 29.59 |
Chunghwa Telecom has higher revenue and earnings than Bandwidth. Bandwidth is trading at a lower price-to-earnings ratio than Chunghwa Telecom, indicating that it is currently the more affordable of 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 Chunghwa Telecom
Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally. It operates through Consumer Business, Enterprise Business, International Business, and Others segments. The company offers local, domestic long distance, and international long distance fixed-line telephone services; mobile services such as prepaid and postpaid plans; broadband plans; and internet and data services. Chunghwa Telecom Co., Ltd. was incorporated in 1996 and is headquartered in Taipei City, Taiwan.
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