Critical Review: Cambium Networks (NASDAQ:CMBM) & Nuvera Communications (OTCMKTS:NUVR)

Nuvera Communications (OTCMKTS:NUVR) and Cambium Networks (NASDAQ:CMBM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Volatility & Risk

Nuvera Communications has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Cambium Networks has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nuvera Communications and Cambium Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvera Communications	0	0	0	0	0.00
Cambium Networks	1	0	0	0	1.00

Earnings & Valuation

This table compares Nuvera Communications and Cambium Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvera Communications	$69.24 million	0.93	-$4.43 million	($0.84)	-14.71
Cambium Networks	$220.20 million	0.25	-$77.42 million	($3.03)	-0.65

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

Profitability

This table compares Nuvera Communications and Cambium Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvera Communications	-5.83%	0.89%	0.31%
Cambium Networks	N/A	N/A	N/A

Institutional & Insider Ownership

13.4% of Nuvera Communications shares are held by institutional investors. Comparatively, 87.2% of Cambium Networks shares are held by institutional investors. 13.8% of Nuvera Communications shares are held by insiders. Comparatively, 57.3% of Cambium Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Cambium Networks beats Nuvera Communications on 7 of the 12 factors compared between the two stocks.

About Nuvera Communications

Nuvera Communications, Inc. operates as a diversified communications company in the United States. The company offers broadband Internet access and voice over Internet protocol (VoIP) phone services; voice services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email and managed services comprising web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long-distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was incorporated in 1905 and is headquartered in New Ulm, Minnesota.

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.