Cambium Networks (NASDAQ:CMBM) and AT&T (NYSE:T) Financial Analysis

Cambium Networks (NASDAQ:CMBM) and AT&T (NYSE:T) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

Cambium Networks has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, AT&T has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Cambium Networks and AT&T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cambium Networks	N/A	N/A	N/A
AT&T	10.29%	13.36%	3.99%

Insider & Institutional Ownership

87.2% of Cambium Networks shares are held by institutional investors. Comparatively, 57.1% of AT&T shares are held by institutional investors. 57.3% of Cambium Networks shares are held by company insiders. Comparatively, 0.1% of AT&T shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Cambium Networks and AT&T, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	0	0	1	0	3.00
AT&T	1	5	17	1	2.75

Cambium Networks currently has a consensus target price of $3.00, suggesting a potential upside of 347.43%. AT&T has a consensus target price of $30.40, suggesting a potential upside of 4.75%. Given Cambium Networks’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cambium Networks is more favorable than AT&T.

Earnings & Valuation

This table compares Cambium Networks and AT&T”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cambium Networks	$172.22 million	0.11	-$77.42 million	($3.03)	-0.22
AT&T	$123.98 billion	1.67	$10.95 billion	$1.76	16.49

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

Summary

AT&T beats Cambium Networks on 10 of the 15 factors compared between the two stocks.

About Cambium Networks

Cambium Networks Corporation, together with its subsidiaries, engages in the design, development, and manufacture of wireless broadband and Wi-Fi networking infrastructure solutions. The company offers point-to-point fixed wireless backhaul and point-to-multipoint fixed wireless solutions; and enterprise solutions comprising cnMatrix cloud-managed wireless-aware switching solution, Xirrus Wi-Fi solutions, and Wi-Fi 6/6E access points which support cnMaestro and Xirrus XMS management. It also offers cnMatrix Ethernet enterprise switching solutions; cnMaestro and cnMaestro X network management platform that provide users with an integrated, intelligent, and easy to use tool for end-to-end network management; network planning tools, such as cnHeat, a network planning subscription service that provides a heat map coverage model display of locations for FWB connectivity; LINKPlanner that allows users to visualize and analyze hypothetical network deployment scenarios to evaluate performance and reliability; and cnArcher, a smartphone app that accelerates installation and deployment of fixed wireless products by field technicians. The company's products are used in broadband access, wireless backhaul, Internet of Things, public safety, national security, and defense communications networks, and Wi-Fi access applications. It serves public or private network operators; broadband internet service providers; mobile network operators; mid-market enterprises, such as education, hospitality, multi-dwelling units, and retail; state and local government; energy, mining, rail operator and utility industries; and military agencies in North America, Europe, the Middle East, Africa, the Caribbean and Latin America, and the Asia Pacific. The company was formerly known as Vector Cambium Holdings (Cayman), Ltd. and changed its name to Cambium Networks Corporation in 2018. Cambium Networks Corporation was founded in 2011 and is headquartered in Rolling Meadows, Illinois.

About AT&T

AT&T, Inc. is a holding company, which engages in the provision of telecommunications and technology services. It operates through the Communications and Latin America segments. The Communications segment offers wireless, wireline telecom, and broadband services to businesses and consumers located in the US and businesses globally. The Latin America segment provides wireless services and equipment in Mexico. The company was founded in 1983 and is headquartered in Dallas, TX.