Ubiquiti (NASDAQ:UI) versus Ceragon Networks (NASDAQ:CRNT) Critical Analysis

Ubiquiti (NASDAQ:UIGet Rating) and Ceragon Networks (NASDAQ:CRNTGet Rating) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ubiquiti and Ceragon Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti 0 0 0 0 N/A
Ceragon Networks 0 0 2 0 3.00

Ceragon Networks has a consensus price target of $5.63, suggesting a potential upside of 199.20%. Given Ceragon Networks’ higher probable upside, analysts clearly believe Ceragon Networks is more favorable than Ubiquiti.

Volatility and Risk

Ubiquiti has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Insider and Institutional Ownership

5.3% of Ubiquiti shares are owned by institutional investors. Comparatively, 23.4% of Ceragon Networks shares are owned by institutional investors. 90.1% of Ubiquiti shares are owned by company insiders. Comparatively, 19.0% of Ceragon Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Ubiquiti and Ceragon Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti 25.51% -632.62% 49.77%
Ceragon Networks -5.44% -4.69% -2.25%

Valuation & Earnings

This table compares Ubiquiti and Ceragon Networks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ubiquiti $1.90 billion 7.92 $616.58 million $7.05 35.30
Ceragon Networks $290.77 million 0.54 -$14.83 million ($0.20) -9.40

Ubiquiti has higher revenue and earnings than Ceragon Networks. Ceragon Networks is trading at a lower price-to-earnings ratio than Ubiquiti, indicating that it is currently the more affordable of the two stocks.

Summary

Ubiquiti beats Ceragon Networks on 8 of the 13 factors compared between the two stocks.

Ubiquiti Company Profile (Get Rating)

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site and remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, offers base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

Ceragon Networks Company Profile (Get Rating)

Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services. Its wireless backhaul solutions use microwave and millimeter wave technology to transfer telecommunication traffic between base stations, small/distributed cells, and the core of the service provider's network. The company also offers wireless fronthaul solutions that use microwave technology for ultra-high speed, ultra-low latency communication for wireless 5G and 4G base stations. In addition, it provides IP-20 all-outdoor solutions, such as IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V; IP-20 split-mount/all-indoor solutions comprising IP-20N/IP-20A, IP-20F, and IP-20G; and IP-50 disaggregated solutions, including IP-50E, IP-50C, IP-50S, and IP-50FX for various short-haul, long-haul, fronthaul, and enterprise access applications. Further, the company offers network management system; and network and radio planning, site survey, solutions development, installation, network auditing and optimization, maintenance, training, and other services. It provides its services to smart-phone applications, such as internet browsing, social networking, image sharing, music, and video applications; oil and gas companies; public safety organizations; business and public institutions; broadcasters; energy utilities; and private communications networks. The company sells its products through direct sales, original equipment manufacturers, resellers, distributors, and system integrators. It operates in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was incorporated in 1996 and is headquartered in Tel Aviv, Israel.

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