Ceragon Networks (NASDAQ: CRNT) and Maxar Technologies (NYSE:MAXR) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ceragon Networks and Maxar Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceragon Networks 0 2 1 0 2.33
Maxar Technologies 0 2 6 0 2.75

Ceragon Networks currently has a consensus price target of $2.50, indicating a potential downside of 36.22%. Maxar Technologies has a consensus price target of $65.13, indicating a potential upside of 25.89%. Given Maxar Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Maxar Technologies is more favorable than Ceragon Networks.

Profitability

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

Net Margins Return on Equity Return on Assets
Ceragon Networks 5.23% 12.82% 6.39%
Maxar Technologies 6.65% 10.52% 3.31%

Insider and Institutional Ownership

20.2% of Ceragon Networks shares are held by institutional investors. Comparatively, 75.1% of Maxar Technologies shares are held by institutional investors. 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 company will outperform the market over the long term.

Valuation & Earnings

This table compares Ceragon Networks and Maxar Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceragon Networks $332.03 million 0.92 $15.56 million $0.18 21.78
Maxar Technologies $1.26 billion 2.32 $100.40 million $2.13 24.29

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

Dividends

Maxar Technologies pays an annual dividend of $1.17 per share and has a dividend yield of 2.3%. Ceragon Networks does not pay a dividend. Maxar Technologies pays out 54.9% of its earnings in the form of a dividend.

Summary

Maxar Technologies beats Ceragon Networks on 11 of the 15 factors compared between the two stocks.

Ceragon Networks Company Profile

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 radio 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 Platform solutions for various short-haul and long-haul applications, including IP-20N/IP-20A, IP-20GX, IP-20F, IP-20G, IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V. 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. 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.

Maxar Technologies Company Profile

Maxar Technologies Ltd., a space and geospatial intelligence company, provides satellites, earth imagery, geospatial data, and analytics for the commercial and government customers worldwide. The company operates through three segments: Space Systems, Imagery, and Services. The Space Systems segment supplies space and ground based infrastructure and information solutions, including communication and imaging satellites, payloads and antenna subsystems, space-based and airborne surveillance solutions, and associated ground infrastructure and support services for communications and surveillance and intelligence applications. This segment also offers a range of services, such as television and radio distribution, broadband Internet, and mobile communications in the communications market; and spacecraft and subsystems for the U.S. government and other customers, as well as robotic systems for the space and terrestrial markets. It serves government agencies, communication satellite operators, and communication satellite manufacturers. The Imagery segment supplies integrated electro-optical and radar imagery products for the U.S., Canadian, and other international government agencies, such as defense and intelligence, as well as commercial customers in various markets. The Services segment provides geospatial products and services for the U.S. government, as well as for other international governments for intelligence, global development organizations, and commercial customers. The company was formerly known as MacDonald, Dettwiler and Associates Ltd. and changed its name to Maxar Technologies Ltd. in October 2017. Maxar Technologies Ltd. was founded in 1969 and is based in Westminster, Colorado.

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