Aviat Networks (NASDAQ: AVNW) and Ceragon Networks (NASDAQ:CRNT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
48.9% of Aviat Networks shares are owned by institutional investors. Comparatively, 22.5% of Ceragon Networks shares are owned by institutional investors. 6.7% of Aviat Networks shares are owned by insiders. Comparatively, 19.0% of Ceragon Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Aviat Networks and Ceragon Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Aviat Networks and Ceragon Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aviat Networks||$243.70 million||0.36||-$5.71 million||($2.77)||-5.89|
|Ceragon Networks||$333.15 million||0.49||$31.87 million||$0.20||10.45|
Ceragon Networks has higher revenue and earnings than Aviat Networks. Aviat Networks is trading at a lower price-to-earnings ratio than Ceragon Networks, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Aviat Networks has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Aviat Networks and Ceragon Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ceragon Networks has a consensus target price of $3.00, indicating a potential upside of 43.54%. Given Ceragon Networks’ higher possible upside, analysts clearly believe Ceragon Networks is more favorable than Aviat Networks.
Ceragon Networks beats Aviat Networks on 10 of the 11 factors compared between the two stocks.
About Aviat Networks
Aviat Networks, Inc., together with its subsidiaries, is a supplier of microwave networking solutions. The Company’s product categories include point-to-point microwave and millimeter wave radios that are licensed (subject to local frequency regulatory requirements), lightly-licensed and license-exempt (operating in license-exempt frequencies), and element and network management software. In addition, it provides a range of professional services enabling it to deliver turnkey networks, including design, deployment, maintenance and managed services. It designs, manufactures and sells a range of wireless networking products, solutions and services to mobile and fixed public network operators, private network operators, Federal, State and Local government agencies, transportation, energy and utility companies, public safety agencies and broadcast network operators around the world. The Company sells products and services directly to its customers and also use agents and resellers.
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.
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