Ceragon Networks (NASDAQ:CRNT) and SGOCO Group (NASDAQ:SGOC) 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, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Ceragon Networks has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, SGOCO Group has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
This table compares Ceragon Networks and SGOCO Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Ceragon Networks and SGOCO Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ceragon Networks currently has a consensus price target of $4.63, indicating a potential upside of 23.23%. Given Ceragon Networks’ higher probable upside, research analysts clearly believe Ceragon Networks is more favorable than SGOCO Group.
Insider and Institutional Ownership
26.5% of Ceragon Networks shares are owned by institutional investors. Comparatively, 0.2% of SGOCO Group shares are owned by institutional investors. 19.0% of Ceragon Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Ceragon Networks and SGOCO Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ceragon Networks||$343.87 million||0.88||$23.05 million||$0.20||18.80|
|SGOCO Group||$50,000.00||267.49||-$11.21 million||N/A||N/A|
Ceragon Networks has higher revenue and earnings than SGOCO Group.
Ceragon Networks beats SGOCO Group on 10 of the 11 factors compared between the two stocks.
About Ceragon Networks
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 and millimeter wave 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 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-20GX, IP-20F, and IP-20G; and IP-50 disaggregated solutions, including IP-50E, IP-50C, and IP-50FX for various short-haul, long-haul, fronthaul, and enterprise access applications. 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. Ceragon Networks Ltd. has a collaboration agreement with NEC Corporation. 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.
About SGOCO Group
SGOCO Group, Ltd. engages in the product design, distribution, and brand development in the display and computer product market in Mainland China and Hongkong. The company also provides energy saving products and services. Its products include LCD/LED monitors; all-in-one and part-in-one computers; virtual reality technology and devices; and phase change material thermal energy storage products. In addition, it involves in money lending activities. The company also develops tablet PCs, 3D LCD/LED TVs, LED-backlit monitors, and multi-screen display systems for advertising, public announcement, and other institutional uses. It sells its products under the SGOCO, Shangwei, and POVIZON brand names to electronics distributors and trading companies. The company was formerly known as SGOCO Technology, Ltd. SGOCO Group, Ltd. was founded in 2005 and is headquartered in Tsuen Wan, Hong Kong.
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