Head to Head Contrast: Trend Micro (OTCMKTS:TMICY) & Bandwidth (NASDAQ:BAND)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Trend Micro and Bandwidth, as provided by MarketBeat.

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

Bandwidth has a consensus price target of $28.83, indicating a potential upside of 83.19%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts clearly believe Bandwidth is more favorable than Trend Micro.

Volatility & Risk

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

Insider and Institutional Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.77 billion	4.32	$76.20 million	$1.21	44.98
Bandwidth	$601.12 million	0.72	-$16.34 million	($0.93)	-16.92

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

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

Summary

Trend Micro beats Bandwidth on 8 of the 14 factors compared between the two stocks.

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.

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.