Financial Comparison: Bandwidth (NASDAQ:BAND) versus Resonate Blends (OTCMKTS:KOAN)

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

Valuation & Earnings

This table compares Resonate Blends and Bandwidth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resonate Blends	$20,000.00	27.61	-$1.42 million	($0.05)	-0.11
Bandwidth	$601.12 million	0.91	-$16.34 million	($0.93)	-21.48

Resonate Blends has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Resonate Blends and Bandwidth, as reported by MarketBeat.com.

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

Bandwidth has a consensus target price of $28.33, indicating a potential upside of 41.81%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts clearly believe Bandwidth is more favorable than Resonate Blends.

Profitability

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

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

Volatility & Risk

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

Institutional and Insider Ownership

7.4% of Resonate Blends shares are held by institutional investors. Comparatively, 68.5% of Bandwidth shares are held by institutional investors. 50.0% of Resonate Blends shares are held by insiders. Comparatively, 6.2% of Bandwidth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers 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 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.

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.