Critical Comparison: Mitel Networks (NASDAQ:MITL) and Ceragon Networks (CRNT)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Mitel Networks -1.07% -3.71% -0.91%
Ceragon Networks 6.70% 10.79% 6.03%

Valuation & Earnings

This table compares Mitel Networks and Ceragon Networks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitel Networks $1.06 billion 0.00 -$49.70 million ($0.40) N/A
Ceragon Networks $343.87 million 0.87 $23.05 million $0.20 18.60

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

Institutional & Insider Ownership

75.8% of Mitel Networks shares are held by institutional investors. Comparatively, 26.4% of Ceragon Networks shares are held by institutional investors. 5.6% of Mitel Networks shares are held by insiders. Comparatively, 19.0% of Ceragon Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Mitel Networks has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Mitel Networks and Ceragon Networks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitel Networks 0 1 0 0 2.00
Ceragon Networks 0 1 4 0 2.80

Mitel Networks currently has a consensus target price of $14.00, indicating a potential upside of ∞. Ceragon Networks has a consensus target price of $4.63, indicating a potential upside of 24.55%. Given Mitel Networks’ higher probable upside, equities analysts plainly believe Mitel Networks is more favorable than Ceragon Networks.

Summary

Ceragon Networks beats Mitel Networks on 9 of the 13 factors compared between the two stocks.

About Mitel Networks

Mitel Networks Corporation provides cloud and on-site business communications and collaboration software, services, and solutions. It operates in two segments, Enterprise and Cloud. The Enterprise segment sells and supports products and services for premise-based customers, including its premise-based IP and TDM telephony platforms; desktop devices, and unified communications and collaborations (UCC); and contact center applications that are deployed on the customer's premise under the MiVoice brand. The Cloud segment offers retail cloud services, such as UCC applications, voice and data telecommunications, and desktop devices that provide hosted cloud and related services directly to the end users under the MiCloud brand. It also provides wholesale services comprising hosted PBX, voice and video calling, SIP trunking, voicemail, call center, audio conferencing, and video and Web collaboration services to service providers under the Powered by Mitel brand. The company sells its solutions through direct and indirect channels, as well as through strategic technology partnerships in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Mitel Networks Corporation was incorporated in 2001 and is headquartered in Ottawa, Canada.

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.

Receive News & Ratings for Mitel Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mitel Networks and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply