Analyzing Spok (NASDAQ:SPOK) and Cambium Networks (NASDAQ:CMBM)

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

Earnings and Valuation

This table compares Cambium Networks and Spok”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cambium Networks	$220.20 million	0.11	-$77.42 million	($3.03)	-0.28
Spok	$137.65 million	2.61	$14.97 million	$0.83	20.99

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

Risk and Volatility

Cambium Networks has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Spok has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

87.2% of Cambium Networks shares are owned by institutional investors. Comparatively, 50.8% of Spok shares are owned by institutional investors. 57.3% of Cambium Networks shares are owned by insiders. Comparatively, 7.4% of Spok shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Cambium Networks and Spok, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	0	0	1	0	3.00
Spok	0	0	0	1	4.00

Cambium Networks presently has a consensus price target of $3.00, indicating a potential upside of 249.77%. Spok has a consensus price target of $20.00, indicating a potential upside of 14.81%. Given Cambium Networks’ higher possible upside, equities research analysts clearly believe Cambium Networks is more favorable than Spok.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cambium Networks	N/A	N/A	N/A
Spok	12.12%	11.11%	8.05%

Summary

Spok beats Cambium Networks on 9 of the 15 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 Spok

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. The company's products and services enhance workflows for clinicians and support administrative compliance. It delivers clinical information to care teams when and where it matters to enhance patient outcomes; and provides GenA Pager, a one-way alphanumeric pager. The company offers subscriptions to one-way or two-way messaging services, as well as alphanumeric pagers that are configurable to support unencrypted or encrypted operation; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect suite products for contact centers, clinical alerting and notification, mobile communications and messaging, and public safety notifications. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. Spok Holdings, Inc. was founded in 1986 and is headquartered in Alexandria, Virginia.