Head-To-Head Analysis: Bandwidth (NASDAQ:BAND) versus InterCloud Systems (OTCMKTS:ICLD)

Bandwidth (NASDAQ:BAND) and InterCloud Systems (OTCMKTS:ICLD) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Profitability

This table compares Bandwidth and InterCloud Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bandwidth	-0.14%	1.46%	0.48%
InterCloud Systems	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Bandwidth and InterCloud Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	1	1	4	0	2.50
InterCloud Systems	0	0	0	0	0.00

Bandwidth presently has a consensus price target of $20.80, suggesting a potential upside of 38.76%. Given Bandwidth’s stronger consensus rating and higher probable upside, research analysts clearly believe Bandwidth is more favorable than InterCloud Systems.

Institutional & Insider Ownership

68.5% of Bandwidth shares are owned by institutional investors. 6.5% of Bandwidth shares are owned by insiders. Comparatively, 0.5% of InterCloud Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Bandwidth and InterCloud Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$748.49 million	0.60	-$6.52 million	($0.35)	-42.83
InterCloud Systems	N/A	N/A	N/A	N/A	N/A

InterCloud Systems has lower revenue, but higher earnings than Bandwidth.

Summary

Bandwidth beats InterCloud Systems on 8 of the 9 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 InterCloud Systems

InterCloud Systems, Inc. provides networking orchestration and automation for software-defined networking (SDN) and network function virtualization environments to telecommunications service provider and corporate enterprise markets in the United States and internationally. It operates through two segments, Applications and Infrastructure and Professional Services. The Applications and Infrastructure segment provides applications and services, including SDN training, SDN software development and integration, and vertical network function validation; and cabling and other field installations, as well as designs, engineers, installs, and maintains various types of Wi-Fi and DAS networks to enterprise customers. The Professional Services segment engages in the design and deployment of SDN and software-defined wide area networking solutions for enterprise and carrier accounts. The company was incorporated in 1999 and is based in Boca Raton, Florida.