Financial Survey: Bandwidth (NASDAQ:BAND) vs. Gaxos.ai (NASDAQ:GXAI)

Gaxos.ai (NASDAQ:GXAI) and Bandwidth (NASDAQ:BAND) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Gaxos.ai has a beta of 3.18, meaning that its stock price is 218% more volatile than the S&P 500. Comparatively, Bandwidth has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gaxos.ai	N/A	-75.80%	-70.37%
Bandwidth	-3.21%	-1.89%	-0.53%

Institutional and Insider Ownership

42.6% of Gaxos.ai shares are held by institutional investors. Comparatively, 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Gaxos.ai and Bandwidth”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaxos.ai	$275.00	7,160.73	-$3.95 million	N/A	N/A
Bandwidth	$662.03 million	0.70	-$16.34 million	($1.12)	-15.43

Gaxos.ai has higher earnings, but lower revenue than Bandwidth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Gaxos.ai and Bandwidth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaxos.ai	0	0	0	0	N/A
Bandwidth	1	3	5	0	2.44

Bandwidth has a consensus target price of $25.71, indicating a potential upside of 48.81%. Given Bandwidth’s higher probable upside, analysts plainly believe Bandwidth is more favorable than Gaxos.ai.

Summary

Bandwidth beats Gaxos.ai on 7 of the 11 factors compared between the two stocks.

About Gaxos.ai

Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.

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.