CalAmp (NASDAQ:CAMP) versus Cambium Networks (NASDAQ:CMBM) Critical Analysis

Cambium Networks (NASDAQ:CMBM) and CalAmp (NASDAQ:CAMP) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Risk & Volatility

Cambium Networks has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, CalAmp has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.

Profitability

This table compares Cambium Networks and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambium Networks 12.81% 64.87% 20.40%
CalAmp -16.87% -1.81% -0.43%

Insider and Institutional Ownership

87.1% of Cambium Networks shares are held by institutional investors. Comparatively, 75.2% of CalAmp shares are held by institutional investors. 66.8% of Cambium Networks shares are held by insiders. Comparatively, 3.4% of CalAmp shares are held by 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 Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambium Networks 0 1 7 0 2.88
CalAmp 1 0 2 0 2.33

Cambium Networks currently has a consensus target price of $45.38, suggesting a potential downside of 3.33%. CalAmp has a consensus target price of $13.33, suggesting a potential downside of 2.25%. Given CalAmp’s higher probable upside, analysts plainly believe CalAmp is more favorable than Cambium Networks.

Valuation and Earnings

This table compares Cambium Networks and CalAmp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cambium Networks $278.46 million 4.44 $18.58 million $0.70 67.06
CalAmp $308.59 million 1.55 -$56.31 million $0.06 227.33

Cambium Networks has higher earnings, but lower revenue than CalAmp. Cambium Networks is trading at a lower price-to-earnings ratio than CalAmp, indicating that it is currently the more affordable of the two stocks.

Summary

Cambium Networks beats CalAmp on 11 of the 14 factors compared between the two stocks.

Cambium Networks Company Profile

Cambium Networks Corporation, through its subsidiaries, provides wireless broadband networking infrastructure products and solutions for network operators. Its wireless fabric includes intelligent radios, smart antennas, radio frequency (RF) algorithms, wireless-aware switches, and network management software. The company offers point-to-point backhaul, point-to-multipoint distribution, Wi-Fi access, cnMatrix ethernet enterprise switching, cnReach IIoT, cnVision video surveillance transport, and cnMaestro and network management tools and solutions. It also offers point-to-point solutions that are connected to high-speed, high-bandwidth wireline networks; and wireless broadband backhaul to facilities or point-to-multipoint access points deployed throughout a network over distances of approximately 100 kilometers and at 2 gigabytes per second. The company also offers cnPilot and Xirrus Wi-Fi solution provides distributed access to individual users in indoor settings, such as office complexes, and outdoor settings, such as athletic stadiums; cnReach solutions offer narrow-band connectivity for sensors and devices; embedded proprietary RF technology and software enables automated optimization of data flow at the outermost points in the network; and cnMatrix cloud-managed wireless-aware switching solution provides the interface between wireless and wired networks. It serves medium-sized wireless internet service providers, enterprises, and government agencies in North America, Europe, the Middle East, Africa, Central and Latin America, and the Asia Pacific. The company was formerly known as Vector Cambium Holdings (Cayman), Ltd. and changed its name to Cambium Networks Corporation in 2018. The was founded in 2011 and is headquartered in Rolling Meadows, Illinois.

CalAmp Company Profile

CalAmp Corp. provides in telematics systems, and software and subscription services in the United States, Europe, the Middle East, Africa, South America, Asia and Pacific Rim, and internationally. The company offers telematics products, including asset tracking units, mobile telematics devices, fixed and mobile wireless gateways, and routers; and advanced telematics products for the broader connected vehicle and Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also provides CalAmp Telematics Cloud platform, such as cloud-based application enablement and telematics service platforms that facilitate integration of its own applications, as well as those of third parties, through open application programming interfaces; and software as a service applications. In addition, the company offers professional services, including project management, engineering services, and installation services. It sells its products and services to customers in the automotive, insurance, transportation and logistics, government, K12, industrial and construction equipment markets through direct sales organization, a channel partner program, and sales representatives, as well as its Websites and digital platform. The company was founded in 1981 and is headquartered in Irvine, California.

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