Financial Contrast: Cambium Networks (NASDAQ:CMBM) and T-Mobile US (NASDAQ:TMUS)

T-Mobile US (NASDAQ:TMUS) and Cambium Networks (NASDAQ:CMBM) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Volatility & Risk

T-Mobile US has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Cambium Networks has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for T-Mobile US and Cambium Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T-Mobile US	1	12	9	3	2.56
Cambium Networks	0	0	1	0	3.00

T-Mobile US currently has a consensus price target of $258.02, suggesting a potential upside of 8.34%. Cambium Networks has a consensus price target of $3.00, suggesting a potential upside of 249.77%. Given Cambium Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Cambium Networks is more favorable than T-Mobile US.

Insider & Institutional Ownership

42.5% of T-Mobile US shares are owned by institutional investors. Comparatively, 87.2% of Cambium Networks shares are owned by institutional investors. 0.4% of T-Mobile US shares are owned by insiders. Comparatively, 57.3% of Cambium 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.

Earnings & Valuation

This table compares T-Mobile US and Cambium Networks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T-Mobile US	$81.40 billion	3.29	$11.34 billion	$10.60	22.47
Cambium Networks	$220.20 million	0.11	-$77.42 million	($3.03)	-0.28

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

Profitability

This table compares T-Mobile US and Cambium Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T-Mobile US	14.53%	19.68%	5.78%
Cambium Networks	N/A	N/A	N/A

Summary

T-Mobile US beats Cambium Networks on 10 of the 15 factors compared between the two stocks.

About T-Mobile US

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. The company was founded in 1994 and is headquartered in Bellevue, Washington.

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.