Cambium Networks (NASDAQ:CMBM) & ZTE (OTCMKTS:ZTCOF) Head-To-Head Analysis

Cambium Networks (NASDAQ:CMBM) and ZTE (OTCMKTS:ZTCOF) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Cambium Networks and ZTE’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cambium Networks	$220.20 million	0.56	-$77.42 million	($2.31)	-1.91
ZTE	N/A	N/A	N/A	$0.76	2.88

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

Institutional and Insider Ownership

87.2% of Cambium Networks shares are held by institutional investors. Comparatively, 5.3% of ZTE shares are held by institutional investors. 57.8% of Cambium Networks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Cambium Networks and ZTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cambium Networks	-28.87%	-30.83%	-15.54%
ZTE	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Cambium Networks and ZTE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	1	2	3	0	2.33
ZTE	1	0	0	0	1.00

Cambium Networks currently has a consensus price target of $11.04, indicating a potential upside of 150.38%. Given Cambium Networks’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cambium Networks is more favorable than ZTE.

Summary

Cambium Networks beats ZTE on 6 of the 11 factors compared between the two stocks.

About Cambium Networks

Cambium Networks Corporation, together with its subsidiaries, engages in the design, development, and manufacture of wireless broadband and Wi-Fi networking infrastructure solutions. The company offers point-to-point fixed wireless backhaul and point-to-multipoint fixed wireless solutions; and enterprise solutions comprising cnMatrix cloud-managed wireless-aware switching solution, Xirrus Wi-Fi solutions, and Wi-Fi 6/6E access points which support cnMaestro and Xirrus XMS management. It also offers cnMatrix Ethernet enterprise switching solutions; cnMaestro and cnMaestro X network management platform that provide users with an integrated, intelligent, and easy to use tool for end-to-end network management; network planning tools, such as cnHeat, a network planning subscription service that provides a heat map coverage model display of locations for FWB connectivity; LINKPlanner that allows users to visualize and analyze hypothetical network deployment scenarios to evaluate performance and reliability; and cnArcher, a smartphone app that accelerates installation and deployment of fixed wireless products by field technicians. The company's products are used in broadband access, wireless backhaul, Internet of Things, public safety, national security, and defense communications networks, and Wi-Fi access applications. It serves public or private network operators; broadband internet service providers; mobile network operators; mid-market enterprises, such as education, hospitality, multi-dwelling units, and retail; state and local government; energy, mining, rail operator and utility industries; and military agencies in North America, Europe, the Middle East, Africa, the Caribbean and Latin America, and the Asia Pacific. The company was formerly known as Vector Cambium Holdings (Cayman), Ltd. and changed its name to Cambium Networks Corporation in 2018. Cambium Networks Corporation was founded in 2011 and is headquartered in Rolling Meadows, Illinois.

About ZTE

ZTE Corporation engages in the provision of integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer networks, core networks, server and storage, and other innovative technologies and product solutions. The Consumer Business segment is involved in the development, production and sale of home information terminal, smart phones, mobile internet terminals, and innovative fusion terminals, as well as provision of related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.