Critical Analysis: Bandwidth (NASDAQ:BAND) & Clear Secure (NYSE:YOU)

Clear Secure (NYSE:YOUGet Free Report) and Bandwidth (NASDAQ:BANDGet Free Report) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Clear Secure 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
Clear Secure $613.58 million 3.96 $28.11 million $0.56 29.95
Bandwidth $601.12 million 0.94 -$16.34 million ($1.12) -18.59

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

Volatility & Risk

Clear Secure has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Bandwidth has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Insider & Institutional Ownership

73.8% of Clear Secure shares are held by institutional investors. Comparatively, 68.5% of Bandwidth shares are held by institutional investors. 37.9% of Clear Secure shares are held by company insiders. Comparatively, 6.2% of Bandwidth shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Clear Secure 7.90% 20.62% 7.63%
Bandwidth -4.60% -2.49% -0.70%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Clear Secure and Bandwidth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clear Secure 1 2 3 0 2.33
Bandwidth 0 5 5 0 2.50

Clear Secure currently has a consensus price target of $28.40, indicating a potential upside of 69.35%. Bandwidth has a consensus price target of $25.38, indicating a potential upside of 21.88%. Given Clear Secure’s higher possible upside, equities research analysts plainly believe Clear Secure is more favorable than Bandwidth.

Summary

Clear Secure beats Bandwidth on 12 of the 14 factors compared between the two stocks.

About Clear Secure

(Get Free Report)

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York.

About Bandwidth

(Get Free Report)

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.

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