Head-To-Head Analysis: Anterix (NASDAQ:ATEX) and Bandwidth (NASDAQ:BAND)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bandwidth	-0.14%	1.46%	0.48%
Anterix	-188.56%	-29.71%	-13.48%

Volatility & Risk

Bandwidth has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Anterix has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bandwidth and Anterix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$748.49 million	0.64	-$6.52 million	($0.35)	-45.93
Anterix	$6.03 million	75.98	-$11.37 million	($0.63)	-38.89

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

Analyst Ratings

This is a breakdown of current recommendations for Bandwidth and Anterix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	1	1	4	0	2.50
Anterix	0	0	1	1	3.50

Bandwidth presently has a consensus target price of $20.80, suggesting a potential upside of 29.39%. Anterix has a consensus target price of $67.00, suggesting a potential upside of 173.47%. Given Anterix’s stronger consensus rating and higher possible upside, analysts clearly believe Anterix is more favorable than Bandwidth.

Institutional and Insider Ownership

68.5% of Bandwidth shares are owned by institutional investors. Comparatively, 87.7% of Anterix shares are owned by institutional investors. 6.2% of Bandwidth shares are owned by company insiders. Comparatively, 45.6% of Anterix shares are owned 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.

Summary

Bandwidth beats Anterix on 8 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 Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.