Analyzing Trend Micro (OTCMKTS:TMICY) & Bandwidth (NASDAQ:BAND)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Bandwidth and Trend Micro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	1	2	4	0	2.43
Trend Micro	0	0	0	0	0.00

Bandwidth currently has a consensus target price of $28.83, suggesting a potential upside of 83.89%. Given Bandwidth’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bandwidth is more favorable than Trend Micro.

Insider and Institutional Ownership

68.5% of Bandwidth shares are held by institutional investors. Comparatively, 0.0% of Trend Micro shares are held by institutional investors. 6.2% of Bandwidth shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Bandwidth and Trend Micro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$601.12 million	0.72	-$16.34 million	($0.93)	-16.86
Trend Micro	$1.77 billion	4.29	$76.20 million	$1.21	44.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bandwidth	-2.23%	-0.89%	-0.26%
Trend Micro	9.06%	20.50%	6.86%

Risk & Volatility

Bandwidth has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Summary

Trend Micro beats Bandwidth on 8 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 Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.