Financial Review: Ceragon Networks (NASDAQ:CRNT) & Cellcom Israel (OTCMKTS:CELJF)

Ceragon Networks (NASDAQ:CRNTGet Free Report) and Cellcom Israel (OTCMKTS:CELJFGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Valuation and Earnings

This table compares Ceragon Networks and Cellcom Israel”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceragon Networks $394.19 million 0.46 $24.06 million $0.16 12.69
Cellcom Israel $1.20 billion N/A $46.74 million $0.36 25.76

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

Volatility & Risk

Ceragon Networks has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Institutional and Insider Ownership

13.3% of Ceragon Networks shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by 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 Ceragon Networks and Cellcom Israel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ceragon Networks 3.57% 13.71% 6.79%
Cellcom Israel 5.11% 9.26% 3.48%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ceragon Networks and Cellcom Israel, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceragon Networks 0 0 5 0 3.00
Cellcom Israel 1 0 0 0 1.00

Ceragon Networks currently has a consensus target price of $5.30, indicating a potential upside of 161.08%. Given Ceragon Networks’ stronger consensus rating and higher possible upside, analysts plainly believe Ceragon Networks is more favorable than Cellcom Israel.

Summary

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

About Ceragon Networks

(Get Free Report)

Ceragon Networks Ltd., together with its subsidiaries, provides wireless transport solutions for cellular operators and other wireless service providers in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company's solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the service provider's network. It also 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-50EX, IP-50C, IP-50CX, and IP-50FX for various short-haul, long-haul, fronthaul, small cells, routing, and enterprise access applications. In addition, the company offers network and radio planning, site surveys, solutions development, installation, network rollout, wireless transport network auditing and optimization, maintenance, training, and other services. It serves internet service providers, municipalities, government, utilities, and maritime communications broadcasters and defense, as well as 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. 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 Rosh Ha'Ayin, Israel.

About Cellcom Israel

(Get Free Report)

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Cellular and Fixed-line. The Cellular segment offers cellular communications, and cellular equipment and related services. The Fixed-line segment provides infrastructure and internet access, internet-based television, international telephony, landline telephony services, and transmission services for business customers and for telecommunication operators; and conferencing, cloud computing, and server hosting services, as well as IOT solutions. This segment also sells equipment, such as computers and communication equipment, including servers, routers, and switches, and others; and software and integration of information security products. The company was incorporated in 1994 and is headquartered in Netanya, Israel.

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