Vuzix (VUZI) and Ceragon (CRNT) Critical Analysis

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ceragon and Vuzix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceragon 0 2 1 0 2.33
Vuzix 0 0 3 0 3.00

Ceragon currently has a consensus target price of $2.50, indicating a potential downside of 19.09%. Vuzix has a consensus target price of $10.50, indicating a potential upside of 89.19%. Given Vuzix’s stronger consensus rating and higher probable upside, analysts clearly believe Vuzix is more favorable than Ceragon.

Profitability

This table compares Ceragon and Vuzix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ceragon 5.23% 12.82% 6.39%
Vuzix -354.57% -89.53% -76.95%

Earnings and Valuation

This table compares Ceragon and Vuzix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceragon $332.03 million 0.73 $15.56 million $0.18 17.17
Vuzix $5.54 million 27.38 -$19.63 million ($1.02) -5.44

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

Institutional & Insider Ownership

20.0% of Ceragon shares are held by institutional investors. Comparatively, 8.4% of Vuzix shares are held by institutional investors. 19.0% of Ceragon shares are held by insiders. Comparatively, 18.4% of Vuzix 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.

Volatility and Risk

Ceragon has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Summary

Ceragon beats Vuzix on 9 of the 14 factors compared between the two stocks.

About Ceragon

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.

About Vuzix

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Its wearable display products include augmented reality (AR) smart glasses for various enterprise and commercial users and applications; and video viewing glasses for on-the-go users as mobile displays for entertainment and gaming. The company's products also include binocular wearable displays that contain two micro displays mounted in a frame attached to eyeglass-style temples or stereo headphones; monocular smart glasses products for the enterprise, industrial, and commercial markets, as well as video headphones; AR wearable products, which provide users with a live, direct, or indirect view of a physical real-world environment. Its products are worn as eyeglasses that enable the user to view video and digital content, such as movies, computer data, the Internet, or video games. In addition, it offers an app store on its Websites where users can download and purchase applications, including third party applications; VUZIX Basics, an application that provides the fundamental benefits of smart glasses to users; and VUZIX Basics Video provides remote telepresence capabilities. Further, the company provides waveguide optics and design reference kits, and custom and engineering solutions. Vuzix Corporation offers its products directly to consumers, as well as through specialty retailers, online retailers, distributors, value added resellers, and Webstores. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in 2007. Vuzix Corporation was founded in 1997 and is headquartered in West Henrietta, New York.

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



Leave a Reply