Head to Head Review: Ceragon Networks (NASDAQ:CRNT) vs. PLDT (NYSE:PHI)

Ceragon Networks (NASDAQ:CRNT) and PLDT (NYSE:PHI) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Ceragon Networks and PLDT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceragon Networks	$394.19 million	0.56	$24.06 million	$0.16	15.56
PLDT	$3.79 billion	1.12	$565.37 million	$2.59	7.56

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

Analyst Recommendations

This is a breakdown of recent recommendations for Ceragon Networks and PLDT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceragon Networks	0	0	5	0	3.00
PLDT	1	1	0	0	1.50

Ceragon Networks presently has a consensus target price of $5.30, suggesting a potential upside of 112.85%. Given Ceragon Networks’ stronger consensus rating and higher possible upside, equities analysts plainly believe Ceragon Networks is more favorable than PLDT.

Profitability

This table compares Ceragon Networks and PLDT’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%
PLDT	14.67%	28.96%	5.44%

Institutional & Insider Ownership

13.3% of Ceragon Networks shares are held by institutional investors. Comparatively, 2.3% of PLDT shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by insiders. Comparatively, 0.7% of PLDT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Ceragon Networks has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, PLDT has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Summary

Ceragon Networks beats PLDT on 8 of the 14 factors compared between the two stocks.

About Ceragon Networks

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 PLDT

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.