Bandwidth (NASDAQ:BAND – Get Free Report) and Informatica (NYSE:INFA – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.
Valuation and Earnings
This table compares Bandwidth and Informatica’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Bandwidth | $601.12 million | 0.78 | -$16.34 million | ($1.12) | -15.32 |
Informatica | $1.64 billion | 4.47 | -$125.28 million | ($0.02) | -1,245.50 |
Bandwidth has higher earnings, but lower revenue than Informatica. Informatica is trading at a lower price-to-earnings ratio than Bandwidth, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
Volatility and Risk
Bandwidth has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Informatica has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Profitability
This table compares Bandwidth and Informatica’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Bandwidth | -3.21% | -1.89% | -0.53% |
Informatica | 9.60% | 6.16% | 2.70% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Bandwidth and Informatica, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Bandwidth | 1 | 3 | 5 | 0 | 2.44 |
Informatica | 0 | 4 | 7 | 0 | 2.64 |
Bandwidth currently has a consensus target price of $25.71, suggesting a potential upside of 49.85%. Informatica has a consensus target price of $32.55, suggesting a potential upside of 30.65%. Given Bandwidth’s higher possible upside, equities analysts clearly believe Bandwidth is more favorable than Informatica.
Summary
Informatica beats Bandwidth 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 Informatica
Informatica Inc. develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. Its platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality and observability products to profile, cleanse, standardize, observe, and monitor data to deliver accurate, complete, and consistent data; and master data management products to create an authoritative single source of truth of business-critical data. The company's platform also includes customer and business 360 application that allow business analysts to create 360-degree views of business data domains like customer, product, supplier, reference, and finance with simplified business user experiences; data catalog products that enables customers to quickly find, access, and understand enterprise data using a simple Google-like search experience; governance and privacy products that help users define policies, govern data, and ensure compliance with industry and corporate policies; and a data marketplace that delivers cloud shopping experience for data consumers and enables data sharing and AI models across organizations to facilitate data-driven decision making. It also offers maintenance and professional services. The company sells its products through its direct sales team. The company was founded in 1993 and is headquartered in Redwood City, California.
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