Ceragon Networks (NASDAQ:CRNT – Get Free Report) and China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Risk & Volatility
Ceragon Networks has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, China Techfaith Wireless Communication Technology has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ceragon Networks and China Techfaith Wireless Communication Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ceragon Networks | $338.73 million | 0.56 | -$2.09 million | ($0.03) | -69.00 |
| China Techfaith Wireless Communication Technology | N/A | N/A | N/A | N/A | N/A |
China Techfaith Wireless Communication Technology has lower revenue, but higher earnings than Ceragon Networks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Ceragon Networks and China Techfaith Wireless Communication Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ceragon Networks | 2 | 0 | 4 | 0 | 2.33 |
| China Techfaith Wireless Communication Technology | 0 | 0 | 0 | 0 | 0.00 |
Ceragon Networks presently has a consensus target price of $3.75, suggesting a potential upside of 81.16%. Given Ceragon Networks’ stronger consensus rating and higher probable upside, research analysts plainly believe Ceragon Networks is more favorable than China Techfaith Wireless Communication Technology.
Insider & Institutional Ownership
13.3% of Ceragon Networks shares are owned by institutional investors. 19.0% of Ceragon Networks shares are owned by company insiders. Comparatively, 33.3% of China Techfaith Wireless Communication Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Ceragon Networks and China Techfaith Wireless Communication Technology’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% |
| China Techfaith Wireless Communication Technology | N/A | N/A | N/A |
Summary
Ceragon Networks beats China Techfaith Wireless Communication Technology on 7 of the 10 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 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.
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