Ceragon Networks (NASDAQ: CRNT) and Silicom (NASDAQ:SILC) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitabiliy, risk, valuation, institutional ownership and dividends.
Insider and Institutional Ownership
21.7% of Ceragon Networks shares are held by institutional investors. Comparatively, 25.5% of Silicom shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by company insiders. Comparatively, 25.4% of Silicom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Ceragon Networks has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Silicom has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
This table compares Ceragon Networks and Silicom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Ceragon Networks and Silicom’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ceragon Networks||$309.83 million||0.65||$28.37 million||$0.14||18.43|
|Silicom||$104.33 million||3.63||$20.46 million||$1.86||27.62|
Ceragon Networks has higher revenue and earnings than Silicom. Ceragon Networks is trading at a lower price-to-earnings ratio than Silicom, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Ceragon Networks and Silicom, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ceragon Networks currently has a consensus price target of $3.00, indicating a potential upside of 16.28%. Silicom has a consensus price target of $60.00, indicating a potential upside of 16.80%. Given Silicom’s stronger consensus rating and higher probable upside, analysts clearly believe Silicom is more favorable than Ceragon Networks.
Silicom pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Ceragon Networks does not pay a dividend. Silicom pays out 53.8% of its earnings in the form of a dividend.
Silicom beats Ceragon Networks on 13 of the 16 factors compared between the two stocks.
About Ceragon Networks
Ceragon Networks Ltd. offers wireless backhaul solutions. The Company’s products include FibeAir IP-20 Platform, FibeAir IP-20 Assured Platform and Network Management. The Company provides its services to wireless service providers, public safety organizations, government agencies and utility companies, among others. Its solutions are deployed by over 460 service providers, as well as a range of private network owners, in over 130 countries. The Company’s FibeAir IP-20 platform offers flexibility in choosing all-outdoor, split-mount and all-indoor configurations to suit any deployment scenario. The FibeAir IP-20 platform includes product categories, such as shorthaul-access and shorthaul-aggregation. The FibeAir IP-20 Assured platform includes product categories, such as shorthaul-access, shorthaul-aggregation, small cells, longhaul and enterprise access. Its NetMaster is a Network Management System (NMS), which is designed for managing large-scale wireless backhaul networks.
Silicom Ltd. (Silicom) is engaged in the design, manufacture, marketing and support of networking and data infrastructure solutions for a range of servers, server-based systems and communications devices. The Company’s products include server network interface cards with and without bypass (Server Adapters); Intelligent and programmable cards, with features, such as encryption, acceleration, data compression, redirection, time stamping, network capture solutions, field programmable gate array (FPGA) based ultra-low latency solutions, and/or other offload features and/or compute blades (Smart Cards), and standalone Products. The Company’s market segments for its products include network appliances; servers; data storage, including Big Data; The Cloud, virtualized data centers, with and without software-defined networking (SDN), and Internet of Things (IOT).
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