Cambium Networks (NASDAQ:CMBM) and Digital Ally (NASDAQ:KUST) Critical Comparison

Cambium Networks (NASDAQ:CMBM) and Digital Ally (NASDAQ:KUST) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

87.2% of Cambium Networks shares are held by institutional investors. Comparatively, 4.2% of Digital Ally shares are held by institutional investors. 57.3% of Cambium Networks shares are held by insiders. Comparatively, 0.0% of Digital Ally shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Cambium Networks and Digital Ally, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	1	0	0	0	1.00
Digital Ally	1	0	0	0	1.00

Profitability

This table compares Cambium Networks and Digital Ally’s 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
Digital Ally	-96.36%	-277.67%	-56.35%

Risk and Volatility

Cambium Networks has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Digital Ally has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cambium Networks and Digital Ally”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	$172.22 million	0.07	-$77.42 million	($2.10)	-0.19
Digital Ally	$13.75 million	0.32	-$6.67 million	($16.87)	-0.04

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

Summary

Cambium Networks beats Digital Ally on 8 of the 11 factors compared between the two stocks.

About Cambium Networks

Cambium Networks Corporation, together with its subsidiaries, engages in the design, development, and manufacture of wireless broadband and Wi-Fi networking infrastructure solutions. The company offers point-to-point fixed wireless backhaul and point-to-multipoint fixed wireless solutions; and enterprise solutions comprising cnMatrix cloud-managed wireless-aware switching solution, Xirrus Wi-Fi solutions, and Wi-Fi 6/6E access points which support cnMaestro and Xirrus XMS management. It also offers cnMatrix Ethernet enterprise switching solutions; cnMaestro and cnMaestro X network management platform that provide users with an integrated, intelligent, and easy to use tool for end-to-end network management; network planning tools, such as cnHeat, a network planning subscription service that provides a heat map coverage model display of locations for FWB connectivity; LINKPlanner that allows users to visualize and analyze hypothetical network deployment scenarios to evaluate performance and reliability; and cnArcher, a smartphone app that accelerates installation and deployment of fixed wireless products by field technicians. The company's products are used in broadband access, wireless backhaul, Internet of Things, public safety, national security, and defense communications networks, and Wi-Fi access applications. It serves public or private network operators; broadband internet service providers; mobile network operators; mid-market enterprises, such as education, hospitality, multi-dwelling units, and retail; state and local government; energy, mining, rail operator and utility industries; and military agencies in North America, Europe, the Middle East, Africa, the Caribbean 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. Cambium Networks Corporation was founded in 2011 and is headquartered in Rolling Meadows, Illinois.

About Digital Ally

Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States and internationally. It operates through Video Solutions, Revenue Cycle Management, and Ticketing segments. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; miniature body-worn digital video systems for law enforcement and private security; and VuLink, an in-car device that enables an in-car digital audio/video system and a body worn digital audio/video camera system to automatically and simultaneously start recording. It also provides VuVault and EVO Web, a cloud-based evidence management system; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, sanitizer wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.