Analyzing Ceragon Networks (NASDAQ:CRNT) and Telecom Italia (OTCMKTS:TIAIY)

Ceragon Networks (NASDAQ:CRNT) and Telecom Italia (OTCMKTS:TIAIY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

13.3% of Ceragon Networks shares are owned by institutional investors. 19.0% of Ceragon Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ceragon Networks and Telecom Italia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceragon Networks	1	1	3	0	2.40
Telecom Italia	0	0	0	0	0.00

Ceragon Networks presently has a consensus target price of $3.50, indicating a potential upside of 38.34%. Given Ceragon Networks’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Ceragon Networks is more favorable than Telecom Italia.

Earnings & Valuation

This table compares Ceragon Networks and Telecom Italia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceragon Networks	$338.73 million	0.66	-$2.09 million	($0.02)	-126.50
Telecom Italia	$16.95 billion	1.13	$335.95 million	N/A	N/A

Telecom Italia has higher revenue and earnings than Ceragon Networks.

Risk & Volatility

Ceragon Networks has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Ceragon Networks and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ceragon Networks	-0.62%	3.52%	1.82%
Telecom Italia	N/A	N/A	N/A

Summary

Ceragon Networks beats Telecom Italia on 8 of the 12 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 Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.