Financial Analysis: Cambium Networks (CMBM) versus The Competition

Cambium Networks (NASDAQ:CMBM) is one of 376 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its rivals? We will compare Cambium Networks to similar businesses based on the strength of its institutional ownership, earnings, profitability, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares Cambium Networks and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cambium Networks	N/A	N/A	N/A
Cambium Networks Competitors	-143.90%	-24.05%	-6.42%

Risk & Volatility

Cambium Networks has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Cambium Networks’ rivals have a beta of -0.30, indicating that their average stock price is 130% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cambium Networks and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cambium Networks	$172.22 million	-$77.42 million	-0.19
Cambium Networks Competitors	$4.14 billion	$173.71 million	3.35

Cambium Networks’ rivals have higher revenue and earnings than Cambium Networks. Cambium Networks is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Cambium Networks and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	1	0	0	0	1.00
Cambium Networks Competitors	2059	7636	10469	668	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 34.50%. Given Cambium Networks’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Cambium Networks has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

87.2% of Cambium Networks shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 57.3% of Cambium Networks shares are held by insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Cambium Networks rivals beat Cambium Networks on 7 of the 13 factors compared.

Cambium Networks Company Profile

Cambium Networks Corporation is a networking technology company that develops wireless broadband and enterprise connectivity solutions. Its products are designed to help internet service providers, businesses, governments, educational institutions and other organizations deliver reliable network access in locations where traditional wired infrastructure may be limited or costly. The company’s portfolio includes fixed wireless broadband equipment, point-to-point and point-to-multipoint radio systems, Wi-Fi access points, switches, routers and related network-management software.