Head-To-Head Review: Intuit (INTU) and Bandwidth (BAND)

Intuit (NASDAQ: INTU) and Bandwidth (NASDAQ:BAND) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intuit 3 5 10 0 2.39
Bandwidth 0 0 6 0 3.00

Intuit presently has a consensus price target of $194.75, indicating a potential downside of 1.75%. Bandwidth has a consensus price target of $38.00, indicating a potential upside of 2.07%. Given Bandwidth’s stronger consensus rating and higher probable upside, analysts plainly believe Bandwidth is more favorable than Intuit.

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 0.8%. Bandwidth does not pay a dividend. Intuit pays out 41.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

87.4% of Intuit shares are owned by institutional investors. Comparatively, 21.0% of Bandwidth shares are owned by institutional investors. 5.6% of Intuit shares are owned by insiders. Comparatively, 48.6% of Bandwidth shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Intuit 20.39% 79.36% 25.63%
Bandwidth N/A N/A N/A

Earnings & Valuation

This table compares Intuit and Bandwidth’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intuit $5.18 billion 9.82 $971.00 million $3.77 52.58
Bandwidth $162.96 million 4.05 $5.97 million $0.49 75.98

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

Summary

Intuit beats Bandwidth on 10 of the 15 factors compared between the two stocks.

About Intuit

Intuit Inc. provides financial management and compliance products and services for small businesses, consumers, self-employed, and accounting professionals in the United States and internationally. The company's Small Business segment provides small business payroll products and services, including QuickBooks Desktop software products, such as Desktop Pro, Desktop for Mac, Desktop Premier, and Enterprise; QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; QuickBooks Point of Sale solutions; ProAdvisor Program memberships for accounting professionals; and financial supplies. This segment also offers QuickBooks Online, and QuickBooks Self-Employed financial and business management offerings; QuickBooks Enterprise term licenses and QuickBooks technical support plans; small business payroll services, including QuickBooks Online Payroll, Intuit Online Payroll, QuickBooks Assisted Payroll, and Intuit Full Service Payroll; and payment processing services for small businesses. In addition, it provides merchant services, including credit and debit card, and gift card processing services; check verification and guarantee, and electronic check conversion; Web-based transaction processing services; and e-invoicing, which allows small businesses to email invoices directly from QuickBooks, as well as enables customers to pay online. Its Consumer segment provides TurboTax income tax preparation products and services; and electronic tax filing services. The company's ProConnect segment offers Lacerte, ProSeries, and ProFile desktop tax preparation software products; and ProConnect Tax online tax return preparation, bank products, and related services. It sells products and services through various sales and distribution channels, including Websites, promotions, call centers, retail display, and online mobile application stores, as well as through selected alliance partners and accountants. Intuit Inc. was founded in 1983 and is headquartered in Mountain View, California.

About Bandwidth

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provides in the United States. The company operates through two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or text communications services across mobile application or connected device. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, small and medium-sized businesses, technology companies, and other business. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.

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