Analyzing Airgain (AIRG) and Ceragon Networks (CRNT)

Airgain (NASDAQ:AIRG) and Ceragon Networks (NASDAQ:CRNT) 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 profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

29.3% of Airgain shares are held by institutional investors. Comparatively, 22.5% of Ceragon Networks shares are held by institutional investors. 20.4% of Airgain shares are held by insiders. Comparatively, 19.0% of Ceragon Networks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.



Valuation & Earnings

This table compares Airgain and Ceragon Networks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Airgain $49.52 million 2.37 $1.14 million $0.11 108.09
Ceragon Networks $332.03 million 0.78 $15.56 million $0.18 18.33

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Airgain and Ceragon Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Airgain 0 0 3 0 3.00
Ceragon Networks 0 0 5 0 3.00

Airgain currently has a consensus target price of $13.00, indicating a potential upside of 9.34%. Ceragon Networks has a consensus target price of $4.63, indicating a potential upside of 40.40%. Given Ceragon Networks’ higher possible upside, analysts plainly believe Ceragon Networks is more favorable than Airgain.

Risk and Volatility

Airgain has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares Airgain and Ceragon Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Airgain -6.48% -7.47% -6.23%
Ceragon Networks 4.79% 10.61% 5.53%

Summary

Ceragon Networks beats Airgain on 8 of the 13 factors compared between the two stocks.

Airgain Company Profile

Airgain, Inc. designs, develops, and engineers antenna products for original equipment and design manufacturers, chipset vendors, and service providers worldwide. Its products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; ultra-embedded antennas; omnimax high performance external antennas; MaxBeam carrier class antennas; and SmartMax embedded antennas, as well as automotive, fleet, public safety, and M2M antennas. The company provides embedded antenna technologies to enable high performance wireless networking across a range of home, enterprise, automotive, and Internet of Things. As of December 31, 2017, it had 131 issued patents in the United States, 23 companion patents outside the United States, and 81 patent applications on file. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was founded in 1995 and is headquartered in San Diego, California.

Ceragon Networks Company Profile

Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services worldwide. Its wireless backhaul solutions use microwave radio technology to transfer telecommunication traffic between base stations, small sells, and the core of the service provider's network. The company also provides wireless fronthaul solutions that use microwave technology for communication between LTE/LTE-advanced base band digital unit stations and remote radio heads. In addition, it offers IP-20 Platform solutions for various short-haul and long-haul applications, including IP-20N/IP-20A, IP-20GX, IP-20F, IP-20G, IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V. Further, the company provides network management system; and network and radio planning, site survey, solutions development, installation, maintenance, training, and other services. Ceragon Networks Ltd. provides its services to smart-phone applications, such as Internet browsing, social networking, image sharing, music, and video applications; 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 founded in 1996 and is headquartered in Tel Aviv, Israel.

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