Critical Contrast: Bandwidth (NASDAQ:BAND) and Chunghwa Telecom (NYSE:CHT)

Chunghwa Telecom (NYSE:CHT) and Bandwidth (NASDAQ:BAND) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Chunghwa Telecom and Bandwidth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	2	0	0	2.00
Bandwidth	1	4	4	0	2.33

Bandwidth has a consensus price target of $66.67, indicating a potential upside of 76.37%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts plainly believe Bandwidth is more favorable than Chunghwa Telecom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.58%	10.61%	7.73%
Bandwidth	1.01%	3.70%	1.37%

Valuation & Earnings

This table compares Chunghwa Telecom and Bandwidth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chunghwa Telecom	$7.58 billion	4.99	$1.23 billion	$1.65	29.59
Bandwidth	$753.82 million	1.61	-$12.91 million	($0.12)	-315.00

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.

Risk & Volatility

Chunghwa Telecom has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Bandwidth has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500.

Insider and Institutional Ownership

2.1% of Chunghwa Telecom shares are owned by institutional investors. Comparatively, 68.5% of Bandwidth shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by company insiders. Comparatively, 5.3% of Bandwidth shares are owned by company 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.

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.

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.