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Ondas (NASDAQ:ONDS) and Ceragon Networks (NASDAQ:CRNT) Financial Review

Defense World ·  Dec 2, 2022 02:21

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

Insider & Institutional Ownership

24.2% of Ondas shares are held by institutional investors. Comparatively, 23.8% of Ceragon Networks shares are held by institutional investors. 6.1% of Ondas shares are held by company insiders. Comparatively, 19.0% of Ceragon Networks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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Valuation & Earnings

This table compares Ondas 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
Ondas $2.91 million 36.70 -$15.02 million ($0.93) -2.68
Ceragon Networks $290.77 million 0.58 -$14.83 million ($0.21) -9.48
Ceragon Networks has higher revenue and earnings than Ondas. Ceragon Networks is trading at a lower price-to-earnings ratio than Ondas, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Ondas has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ondas and Ceragon Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ondas 0 0 0 0 N/A
Ceragon Networks 0 0 1 0 3.00

Ondas presently has a consensus target price of $5.00, suggesting a potential upside of 100.80%. Ceragon Networks has a consensus target price of $5.25, suggesting a potential upside of 163.82%. Given Ceragon Networks' higher probable upside, analysts clearly believe Ceragon Networks is more favorable than Ondas.

Profitability

This table compares Ondas and Ceragon Networks' net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ondas -1,764.16% -37.69% -35.07%
Ceragon Networks -5.68% -4.25% -1.91%

Summary

Ceragon Networks beats Ondas on 10 of the 13 factors compared between the two stocks.

About Ondas

(Get Rating)

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. The company operates in two segments, Ondas Networks and American Robotics. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Scout Drone, an AI-powered drone with imaging payloads; the ScoutBase, a ruggedized base station for housing, charging, data processing, and cloud transfer; and ScoutView, an American robotics analytics and user interface software package. It serves users in rail, energy, mining, agriculture, and critical infrastructure markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.

About Ceragon Networks

(Get Rating)

Ceragon Networks Ltd. provides wireless backhaul and fronthaul solutions that enable cellular operators and other wireless service providers. Its solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the core of the service provider's network. The company also uses microwave technology for ultra-high speed, ultra-low latency communication for wireless 5G and 4G, 3G, and other cellular base stations. In addition, it 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-50C, IP-50S, and IP-50FX for various short-haul, long-haul, fronthaul, and enterprise access applications. Further, the company offers network management system; and network and radio planning, site survey, solutions development, installation, network auditing and optimization, maintenance, training, and other services. It provides its services to 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, distributors, and system integrators. It operates in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. 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 HaAyin, Israel.

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