Analyzing Cambium Networks (NASDAQ:CMBM) and Advantest (OTCMKTS:ATEYY)

Cambium Networks (NASDAQ:CMBM) and Advantest (OTCMKTS:ATEYY) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Valuation and Earnings

This table compares Cambium Networks and Advantest”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
Advantest	$7.50 billion	24.62	$2.48 billion	$4.06	62.10

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

Profitability

This table compares Cambium Networks and Advantest’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
Advantest	37.15%	58.10%	38.75%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cambium Networks and Advantest, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	1	0	0	0	1.00
Advantest	0	0	0	2	4.00

Institutional and Insider Ownership

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

Risk & Volatility

Cambium Networks has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Advantest has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Summary

Advantest beats Cambium Networks on 11 of the 13 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 Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.