Cambium Networks (NASDAQ:CMBM) and Casa Systems (NASDAQ:CASA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Profitability
This table compares Cambium Networks and Casa Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Cambium Networks | 2.70% | 21.92% | 5.48% |
| Casa Systems | -6.24% | 11.73% | 1.10% |
Volatility and Risk
Cambium Networks has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Casa Systems has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Institutional and Insider Ownership
12.1% of Cambium Networks shares are owned by institutional investors. Comparatively, 68.3% of Casa Systems shares are owned by institutional investors. 78.7% of Cambium Networks shares are owned by company insiders. Comparatively, 63.9% of Casa Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Cambium Networks and Casa Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cambium Networks | 0 | 1 | 7 | 0 | 2.88 |
| Casa Systems | 1 | 1 | 2 | 0 | 2.25 |
Cambium Networks currently has a consensus price target of $36.1250, suggesting a potential downside of 17.24%. Casa Systems has a consensus price target of $9.6667, suggesting a potential upside of 13.59%. Given Casa Systems' higher probable upside, analysts plainly believe Casa Systems is more favorable than Cambium Networks.
Valuation & Earnings
This table compares Cambium Networks and Casa Systems' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cambium Networks | $267.03 million | 4.40 | $-17,600,000.00 | ($0.31) | -147.58 |
| Casa Systems | $282.30 million | 2.54 | $-48,210,000.00 | ($0.05) | -171.80 |
Cambium Networks has higher earnings, but lower revenue than Casa Systems. Casa Systems is trading at a lower price-to-earnings ratio than Cambium Networks, indicating that it is currently the more affordable of the two stocks.
Summary
Cambium Networks beats Casa Systems on 9 of the 14 factors compared between the two stocks.
