Financial Comparison: Ceragon Networks (NASDAQ:CRNT) vs. Calix (NYSE:CALX)

Ceragon Networks (NASDAQ:CRNT) and Calix (NYSE:CALX) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceragon Networks	$338.73 million	0.54	-$2.09 million	($0.03)	-66.67
Calix	$1.00 billion	2.30	$17.88 million	$0.74	49.40

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

Insider and Institutional Ownership

13.3% of Ceragon Networks shares are held by institutional investors. Comparatively, 98.1% of Calix shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by insiders. Comparatively, 17.4% of Calix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ceragon Networks	-0.95%	2.74%	1.49%
Calix	4.61%	6.17%	4.90%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ceragon Networks and Calix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceragon Networks	1	1	4	0	2.50
Calix	0	2	7	0	2.78

Ceragon Networks presently has a consensus target price of $3.75, suggesting a potential upside of 87.50%. Calix has a consensus target price of $63.86, suggesting a potential upside of 74.68%. Given Ceragon Networks’ higher probable upside, equities research analysts clearly believe Ceragon Networks is more favorable than Calix.

Volatility and Risk

Ceragon Networks has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Calix has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Summary

Calix beats Ceragon Networks on 11 of the 14 factors compared between the two stocks.

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.

About Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.