Financial Comparison: Bandwidth (NASDAQ:BAND) versus ATN International (NASDAQ:ATNI)

Bandwidth (NASDAQ:BAND) and ATN International (NASDAQ:ATNI) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$870.37 million	1.49	-$12.91 million	($0.12)	-336.17
ATN International	$727.97 million	0.59	-$14.91 million	$11.19	2.50

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

Analyst Ratings

This is a summary of recent ratings and target prices for Bandwidth and ATN International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	0	5	4	0	2.44
ATN International	0	2	0	0	2.00

Bandwidth presently has a consensus price target of $66.67, indicating a potential upside of 65.26%. Given Bandwidth’s stronger consensus rating and higher probable upside, analysts clearly believe Bandwidth is more favorable than ATN International.

Volatility & Risk

Bandwidth has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500. Comparatively, ATN International has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares Bandwidth and ATN International’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%
ATN International	24.50%	-6.59%	-2.35%

Institutional & Insider Ownership

68.5% of Bandwidth shares are owned by institutional investors. Comparatively, 65.5% of ATN International shares are owned by institutional investors. 5.3% of Bandwidth shares are owned by company insiders. Comparatively, 5.6% of ATN International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Bandwidth beats ATN International on 10 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 ATN International

ATN International, Inc., through its subsidiaries, engages in the provision of digital infrastructure and communications services to residential, business, and government customers in the United States and internationally. The company operates through International Telecom and US Telecom segments. The company offers mobile, data, voice, broadband, and fixed services; handsets and accessories; and wholesale roaming, long distance voice services, and site maintenance services. It also leases critical network infrastructure, including towers and transport facilities; and provides managed information technology services, such as network, application, infrastructure, and hosting services. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.