Cambium Networks (NASDAQ:CMBM) and EchoStar (NASDAQ:SATS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Insider & Institutional Ownership
12.1% of Cambium Networks shares are owned by institutional investors. Comparatively, 42.5% of EchoStar shares are owned by institutional investors. 78.7% of Cambium Networks shares are owned by company insiders. Comparatively, 51.8% of EchoStar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Cambium Networks and EchoStar's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cambium Networks | $267.03 million | 5.89 | $-17,600,000.00 | ($0.31) | -194.39 |
| EchoStar | $1.89 billion | 1.21 | $-62,920,000.00 | ($1.06) | -22.94 |
Cambium Networks has higher earnings, but lower revenue than EchoStar. Cambium Networks is trading at a lower price-to-earnings ratio than EchoStar, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Cambium Networks and EchoStar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cambium Networks | 0 | 1 | 7 | 0 | 2.88 |
| EchoStar | 0 | 0 | 0 | 1 | 4.00 |
Cambium Networks presently has a consensus price target of $37.8750, suggesting a potential downside of 37.15%. EchoStar has a consensus price target of $41.00, suggesting a potential upside of 68.59%. Given EchoStar's stronger consensus rating and higher probable upside, analysts clearly believe EchoStar is more favorable than Cambium Networks.
Volatility & Risk
Cambium Networks has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, EchoStar has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Profitability
This table compares Cambium Networks and EchoStar's 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% |
| EchoStar | -5.10% | -2.47% | -1.28% |
Summary
Cambium Networks beats EchoStar on 9 of the 15 factors compared between the two stocks.
