Comparing Ceragon Networks (NASDAQ:CRNT) & China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY)

China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY) and Ceragon Networks (NASDAQ:CRNT) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Insider and Institutional Ownership

13.3% of Ceragon Networks shares are owned by institutional investors. 33.3% of China Techfaith Wireless Communication Technology shares are owned by insiders. Comparatively, 19.0% of Ceragon Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares China Techfaith Wireless Communication Technology and Ceragon Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Techfaith Wireless Communication Technology	N/A	N/A	N/A	N/A	N/A
Ceragon Networks	$338.73 million	0.56	-$2.09 million	($0.03)	-69.00

China Techfaith Wireless Communication Technology has higher earnings, but lower revenue than Ceragon Networks.

Profitability

This table compares China Techfaith Wireless Communication Technology and Ceragon Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Techfaith Wireless Communication Technology	N/A	N/A	N/A
Ceragon Networks	-0.95%	2.74%	1.49%

Analyst Recommendations

This is a breakdown of recent recommendations for China Techfaith Wireless Communication Technology and Ceragon Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Techfaith Wireless Communication Technology	0	0	0	0	0.00
Ceragon Networks	2	0	4	0	2.33

Ceragon Networks has a consensus price target of $3.75, indicating a potential upside of 81.16%. Given Ceragon Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Ceragon Networks is more favorable than China Techfaith Wireless Communication Technology.

Risk and Volatility

China Techfaith Wireless Communication Technology has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Summary

Ceragon Networks beats China Techfaith Wireless Communication Technology on 7 of the 10 factors compared between the two stocks.

About China Techfaith Wireless Communication Technology

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally. It operates through Mobile Phone Business and Real Estate segments. The company offers handset design services through outsourcing of EMS providers who engage in assembly and manufacturing operations; and offer testing services of the assembled printed circuit boards, systems, and subsystems for Chinese mobile handset brand owners and international mobile handset brand owners. It also provides feature phones, smart phones, ruggedized phones, wireless modules, smart pads, and wireless software and applications, as well as other electronic components, such as industrial wireless devices. In addition, the company sells mobile handset products under the Tecface, 17FOX, and MOBIFOX brands. Further, it owns, develops, operates, and manages commercial real estate properties. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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.