Critical Survey: Extreme Networks (EXTR) versus Ceragon Networks (CRNT)
Extreme Networks (NASDAQ: EXTR) and Ceragon Networks (NASDAQ:CRNT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Volatility and Risk
Extreme Networks has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Extreme Networks and Ceragon Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Extreme Networks presently has a consensus price target of $8.38, suggesting a potential downside of 21.58%. Ceragon Networks has a consensus price target of $3.00, suggesting a potential upside of 43.54%. Given Ceragon Networks’ higher possible upside, analysts plainly believe Ceragon Networks is more favorable than Extreme Networks.
Institutional & Insider Ownership
80.4% of Extreme Networks shares are owned by institutional investors. Comparatively, 22.5% of Ceragon Networks shares are owned by institutional investors. 1.9% of Extreme Networks shares are owned by company insiders. Comparatively, 19.0% of Ceragon Networks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Extreme Networks and Ceragon Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Extreme Networks and Ceragon Networks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Extreme Networks||$598.12 million||1.97||$38.76 million||($0.08)||-133.50|
|Ceragon Networks||$333.15 million||0.49||$31.87 million||$0.20||10.45|
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.
Extreme Networks beats Ceragon Networks on 10 of the 14 factors compared between the two stocks.
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.
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.
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