Bandwidth Inc. (BAND) vs GigaCloud Technology Inc. (GCT)

Bandwidth Inc. and GigaCloud Technology Inc. are both Software Infrastructure companies. Bandwidth Inc. and GigaCloud Technology Inc. are of similar size ($2.0B and $1.9B). GigaCloud Technology Inc. trades at the lower P/E: 12.7× against 1,022×. GigaCloud Technology Inc. grew revenue faster over the last twelve months: 22.9% against 9.25%. GigaCloud Technology Inc. has the higher net margin (10.7% vs 0.27%) and the higher return on invested capital (68.3% vs −1.77%). Across the 22 metrics below, GigaCloud Technology Inc. leads on 21 and Bandwidth Inc. on 1.

Valuation

Metric BAND GCT Software Infrastructure median
P/E 1,022.33 12.75 28.02
P/S 2.38 1.34 3.07
P/B 4.96 3.69 3.36
Price to free cash flow 29.25 12.48 17.12
EV/EBITDA 41.35 8.88 14.91
EV/Sales 2.63 1.09 3.03
Earnings yield 0.10% 7.84% 0.13%
Free cash flow yield 3.42% 8.01% 1.15%

Profitability

Metric BAND GCT Software Infrastructure median
Gross margin 37.23% 23.96% 61.23%
Operating margin (1.82%) 11.65% 0.00%
Net margin 0.27% 10.65% 0.00%
Free cash flow margin 8.13% 10.76% 1.67%
Return on equity 0.58% 32.34% 0.59%
Return on assets 0.21% 13.25% 0.00%
Return on invested capital (1.77%) 68.33% 0.00%

Growth

Metric BAND GCT Software Infrastructure median
Revenue growth (TTM) 9.25% 22.86% 13.41%
EPS growth (last fiscal year) (79.17%) 17.70% —
Revenue growth, 5-year CAGR 17.05% 36.17% 15.81%
Net income growth, 5-year CAGR 0.00% 60.35% 0.00%

Health

Metric BAND GCT Software Infrastructure median
Debt to equity 0.87 0.00 0.06
Current ratio 2.04 2.09 1.55
Net debt to EBITDA 3.09 (2.71) 0.08

Dividend

Metric BAND GCT Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 — 0.00

Size

Metric BAND GCT Software Infrastructure median
Market cap 1.99b 1.89b 835.96m

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