Critical Survey: Cheer (NASDAQ:CHR) & Bandwidth (NASDAQ:BAND)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Cheer and Bandwidth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheer	0	0	0	0	0.00
Bandwidth	1	1	4	0	2.50

Bandwidth has a consensus price target of $20.80, indicating a potential upside of 33.33%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts plainly believe Bandwidth is more favorable than Cheer.

Insider and Institutional Ownership

18.5% of Cheer shares are held by institutional investors. Comparatively, 68.5% of Bandwidth shares are held by institutional investors. 41.7% of Cheer 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.

Volatility and Risk

Cheer has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Bandwidth has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cheer 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
Cheer	$147.20 million	0.11	$25.97 million	N/A	N/A
Bandwidth	$748.49 million	0.62	-$6.52 million	($0.35)	-44.57

Cheer has higher earnings, but lower revenue than Bandwidth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheer	N/A	N/A	N/A
Bandwidth	-0.14%	1.46%	0.48%

Summary

Bandwidth beats Cheer on 9 of the 12 factors compared between the two stocks.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People’s Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People’s Republic of China.

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.