Ceragon Networks (CRNT) vs. Aviat Networks (AVNW) Head-To-Head Review

Ceragon Networks (NASDAQ: CRNT) and Aviat Networks (NASDAQ:AVNW) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitabiliy and analyst recommendations.

Insider and Institutional Ownership

21.6% of Ceragon Networks shares are owned by institutional investors. Comparatively, 47.9% of Aviat Networks shares are owned by institutional investors. 19.0% of Ceragon Networks shares are owned by company insiders. Comparatively, 6.7% of Aviat Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ceragon Networks and Aviat Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceragon Networks	0	3	0	0	2.00
Aviat Networks	0	0	0	0	N/A

Ceragon Networks presently has a consensus target price of $3.00, indicating a potential upside of 35.75%. Given Ceragon Networks’ higher possible upside, analysts plainly believe Ceragon Networks is more favorable than Aviat Networks.

Earnings and Valuation

This table compares Ceragon Networks and Aviat Networks’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Ceragon Networks	$309.83 million	0.55	$28.37 million	$0.14	15.79
Aviat Networks	$243.70 million	0.40	-$5.71 million	($2.77)	-6.65

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ceragon Networks	3.79%	10.27%	4.77%
Aviat Networks	-5.95%	-13.23%	-4.55%

Risk & Volatility

Ceragon Networks has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

Ceragon Networks beats Aviat Networks on 10 of the 11 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.

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.