Analyzing Resonate Blends (OTCMKTS:KOAN) and Bandwidth (NASDAQ:BAND)

Bandwidth (NASDAQ:BAND) and Resonate Blends (OTCMKTS:KOAN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Valuation & Earnings

This table compares Bandwidth and Resonate Blends”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	0.91	-$16.34 million	($0.93)	-21.30
Resonate Blends	$20,000.00	27.74	-$1.42 million	($0.05)	-0.11

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

Profitability

This table compares Bandwidth and Resonate Blends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bandwidth	-2.23%	-0.89%	-0.26%
Resonate Blends	N/A	N/A	-80.02%

Volatility and Risk

Bandwidth has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Resonate Blends has a beta of 2.75, indicating that its share price is 175% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Bandwidth and Resonate Blends, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bandwidth	1	2	4	0	2.43
Resonate Blends	0	0	0	0	0.00

Bandwidth presently has a consensus target price of $28.33, indicating a potential upside of 43.03%. Given Bandwidth’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bandwidth is more favorable than Resonate Blends.

Insider & Institutional Ownership

68.5% of Bandwidth shares are held by institutional investors. Comparatively, 7.4% of Resonate Blends shares are held by institutional investors. 6.2% of Bandwidth shares are held by insiders. Comparatively, 50.0% of Resonate Blends shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Resonate Blends 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 Resonate Blends

Resonate Blends, Inc., a cannabis holding company, provides cannabis wellness lifestyle products. The company offers Calm to quiet the mind and ease into a gentle sense of wellbeing; Wonder, a THC offering to bring back the youthful sense; Love to reduce barriers to intimacy, stimulate personal connections, and increase tactile sensation; Create to stimulate senses, spark imagination, and channel inner muse; Play to become fully immersed in the moment and the people around; Delight to open up senses; and Sleep for helping to fall asleep. The company was formerly known as Textmunication Holdings, Inc. and changed its name to Resonate Blends, Inc. in December 2019. Resonate Blends, Inc. is based in Calabasas, California.