Financial Survey: Ceragon Networks (NASDAQ:CRNT) versus Optical Cable (NASDAQ:OCC)

Optical Cable (NASDAQ:OCC) and Ceragon Networks (NASDAQ:CRNT) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

13.6% of Optical Cable shares are held by institutional investors. Comparatively, 13.3% of Ceragon Networks shares are held by institutional investors. 22.4% of Optical Cable shares are held by company insiders. Comparatively, 19.0% of Ceragon Networks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Optical Cable and Ceragon Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optical Cable	$73.04 million	1.72	-$1.46 million	$0.29	48.97
Ceragon Networks	$338.73 million	0.54	-$2.09 million	($0.03)	-67.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Optical Cable	3.10%	15.88%	6.17%
Ceragon Networks	-0.95%	2.74%	1.49%

Risk & Volatility

Optical Cable has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Optical Cable and Ceragon Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optical Cable	0	2	0	0	2.00
Ceragon Networks	1	1	4	0	2.50

Ceragon Networks has a consensus target price of $3.75, suggesting a potential upside of 85.64%. Given Ceragon Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Ceragon Networks is more favorable than Optical Cable.

Summary

Optical Cable beats Ceragon Networks on 9 of the 14 factors compared between the two stocks.

About Optical Cable

Optical Cable Corporation, together with its subsidiaries, engages in the manufacture and sale of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic and hybrid cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair constructions. Its fiber optic connectivity products include fiber optic wall mounts, cabinet mount and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories; and copper connectivity products comprising category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for equipment rooms, telecommunications closets, data centers, and workstation applications. In addition, the company offers network, data storage, and telecommunications management systems, such as data cabinets, wall mount enclosures, horizontal and vertical cable management systems, and open frame relay racks; and datacom wiring products, including various enclosures, and modules and modular outlets for single dwelling and multiple dwelling residential uses. Further, it provides specialty fiber optic connectors and connectivity components, copper datacom connectors, and related systems and solutions for military, other harsh environment, and special applications, as well as cylindrical connector products. The company sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was incorporated in 1983 and is headquartered in Roanoke, Virginia.

About Ceragon Networks

Ceragon Networks Ltd., together with its subsidiaries, provides wireless transport solutions for cellular operators and other wireless service providers in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company's solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the service provider's network. It also provides IP-20 all-outdoor solutions, such as IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V; IP-20 split-mount, all-indoor solutions comprising IP-20N/IP-20A, IP-20F, and IP-20G; and IP-50 disaggregated solutions, including IP-50E, IP-50EX, IP-50C, IP-50CX, and IP-50FX for various short-haul, long-haul, fronthaul, small cells, routing, and enterprise access applications. In addition, the company offers network and radio planning, site surveys, solutions development, installation, network rollout, wireless transport network auditing and optimization, maintenance, training, and other services. It serves internet service providers, municipalities, government, utilities, and maritime communications broadcasters and defense, as well as 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 incorporated in 1996 and is headquartered in Rosh Ha'Ayin, Israel.