Analyzing Ceragon Networks (NASDAQ:CRNT) and Extreme Networks (EXTR)
Ceragon Networks (NASDAQ: CRNT) and Extreme Networks (NASDAQ:EXTR) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitabiliy, risk, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Ceragon Networks and Extreme Networks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ceragon Networks||$309.83 million||0.57||$28.37 million||$0.14||16.29|
|Extreme Networks||$559.03 million||1.78||$34.08 million||($0.21)||-43.10|
Extreme Networks has higher revenue and earnings than Ceragon Networks. Extreme Networks is trading at a lower price-to-earnings ratio than Ceragon Networks, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Ceragon Networks and Extreme Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ceragon Networks currently has a consensus price target of $3.00, suggesting a potential upside of 31.58%. Extreme Networks has a consensus price target of $8.25, suggesting a potential downside of 8.84%. Given Ceragon Networks’ higher probable upside, equities research analysts clearly believe Ceragon Networks is more favorable than Extreme Networks.
Institutional and Insider Ownership
22.3% of Ceragon Networks shares are held by institutional investors. Comparatively, 82.1% of Extreme Networks shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by insiders. Comparatively, 1.9% of Extreme Networks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Ceragon Networks and Extreme Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Ceragon Networks has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Extreme Networks has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Extreme Networks beats Ceragon Networks on 9 of the 13 factors compared between the two stocks.
About Ceragon Networks
Ceragon Networks Ltd. offers wireless backhaul solutions. The Company’s products include FibeAir IP-20 Platform, FibeAir IP-20 Assured Platform and Network Management. The Company provides its services to wireless service providers, public safety organizations, government agencies and utility companies, among others. Its solutions are deployed by over 460 service providers, as well as a range of private network owners, in over 130 countries. The Company’s FibeAir IP-20 platform offers flexibility in choosing all-outdoor, split-mount and all-indoor configurations to suit any deployment scenario. The FibeAir IP-20 platform includes product categories, such as shorthaul-access and shorthaul-aggregation. The FibeAir IP-20 Assured platform includes product categories, such as shorthaul-access, shorthaul-aggregation, small cells, longhaul and enterprise access. Its NetMaster is a Network Management System (NMS), which is designed for managing large-scale wireless backhaul networks.
About Extreme Networks
Extreme Networks, Inc. is a provider of network infrastructure equipment. The Company markets its products to business, governmental, healthcare, service provider and educational customers with a focus on corporate enterprises and metropolitan service providers on a global basis. The Company operates through the development and marketing of network infrastructure equipment segment. The Company’s products include ExtremeWireless, ExtremeSwitching, ExtremeControl, ExtremeManagement, ExtremeCloud, ExtremeAnalytics and ExtremeSecurity. The Company offers solutions in categories, which includes industry solutions, technology solutions and managed services solutions. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Russia, Middle East and Africa, and APAC, which includes Asia Pacific, South Asia, India, Australia and Japan.
Receive News & Ratings for Ceragon Networks Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ceragon Networks Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.