Critical Contrast: Net Medical Xpress Solutions (OTCMKTS:NMXS) vs. Bandwidth (NASDAQ:BAND)

Net Medical Xpress Solutions (OTCMKTS:NMXS) and Bandwidth (NASDAQ:BAND) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Profitability

This table compares Net Medical Xpress Solutions and Bandwidth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Medical Xpress Solutions	N/A	N/A	N/A
Bandwidth	-2.23%	-0.89%	-0.26%

Analyst Ratings

This is a breakdown of current ratings and target prices for Net Medical Xpress Solutions and Bandwidth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Medical Xpress Solutions	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 69.41%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts plainly believe Bandwidth is more favorable than Net Medical Xpress Solutions.

Institutional & Insider Ownership

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

Valuation and Earnings

This table compares Net Medical Xpress Solutions and Bandwidth”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Net Medical Xpress Solutions	N/A	N/A	N/A	N/A	N/A
Bandwidth	$703.90 million	0.67	-$16.34 million	($0.93)	-18.30

Net Medical Xpress Solutions has higher earnings, but lower revenue than Bandwidth.

Risk and Volatility

Net Medical Xpress Solutions has a beta of -0.71, meaning that its stock price is 171% less volatile than the S&P 500. Comparatively, Bandwidth has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Summary

Bandwidth beats Net Medical Xpress Solutions on 7 of the 10 factors compared between the two stocks.

About Net Medical Xpress Solutions

Net Medical Xpress Solutions, Inc. provides telemedicine solutions for hospitals, nursing homes, specialty hospitals, and other medical facilities. It provides services in the areas, such as teleneurology, teleneurosurgery, telecardiology, teleorthopedics, telewoundcare, and telenephrology. The company offers a Telemed telemedicine platform, a system used to build a customized telemedicine management system for clients; digital paper, development engine, single pane of glass software, FDA cleared image viewers, and integration connectivity with approximately 43 hospitals based EMR systems; and telemedicine video conferencing equipment and USB clinical tools. It also provides physicians; administrative services, such as credentialing, program management, and call center management; and integration services, including electronic prescription software, prior authorization software, laboratory and malpractice insurance, large scale provider scheduling, medical translation, and rounding services. In addition, the company offers staffing and recruiting services, and diagnostic and clinical services, as well as amazon cloud services. The company was formerly known as New Mexico Software, Inc. and changed its name to Net Medical Xpress Solutions, Inc. in January 2013. Net Medical Xpress Solutions, Inc. was founded in 1995 and is based in Albuquerque, New Mexico.

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.