Ceragon Networks (NASDAQ: CRNT) and QUANTENNA COMMS (NASDAQ:QTNA) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ceragon Networks $333.15 million 0.49 $31.87 million $0.20 10.45
QUANTENNA COMMS $156.57 million 3.69 $2.36 million N/A N/A

Ceragon Networks has higher revenue and earnings than QUANTENNA COMMS.

Institutional and Insider Ownership

22.5% of Ceragon Networks shares are held by institutional investors. Comparatively, 30.8% of QUANTENNA COMMS shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by company insiders. Comparatively, 22.6% of QUANTENNA COMMS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Ceragon Networks 5.00% 13.52% 6.34%
QUANTENNA COMMS N/A 2.36% 1.05%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ceragon Networks and QUANTENNA COMMS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceragon Networks 0 3 0 0 2.00
QUANTENNA COMMS 0 0 7 0 3.00

Ceragon Networks currently has a consensus target price of $3.00, suggesting a potential upside of 43.54%. QUANTENNA COMMS has a consensus target price of $24.20, suggesting a potential upside of 45.08%. Given QUANTENNA COMMS’s stronger consensus rating and higher possible upside, analysts clearly believe QUANTENNA COMMS is more favorable than Ceragon Networks.

Summary

QUANTENNA COMMS beats Ceragon Networks on 6 of the 11 factors compared between the two stocks.

Ceragon Networks Company Profile

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.

QUANTENNA COMMS Company Profile

Quantenna Communications, Inc. is engaged in the design, development and marketing of wireless communication solutions enabling wireless local area networking. The Company’s solutions are designed to deliver wireless fidelity (Wi-Fi) performance to support various connected devices accessing a pool of digital content. The Company combines its wireless systems and software expertise with radio frequency, mixed-signal and digital semiconductor design skills to provide solutions to its customers. Its products include QSR10G, QSR2000, QSR1000, QHS710 and MAUI. The Company offers its products for home networking applications, including home gateways, repeaters, and set-top boxes. Its solutions portfolio consists of various generations of its radio frequency chip and its digital baseband chip, which together support the Institute of Electrical and Electronics Engineers (IEEE) Wi-Fi standards, including 802.11n and 802.11ac.

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