Contrasting Cambium Networks (NASDAQ:CMBM) and Avnet (NASDAQ:AVT)

Avnet (NASDAQ:AVT) and Cambium Networks (NASDAQ:CMBM) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Risk and Volatility

Avnet has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Cambium Networks has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avnet	1.21%	9.57%	3.47%
Cambium Networks	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avnet	$27.63 billion	0.30	$334.39 million	$3.99	24.96
Cambium Networks	$172.22 million	0.07	-$77.42 million	($2.10)	-0.19

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

Insider & Institutional Ownership

95.8% of Avnet shares are held by institutional investors. Comparatively, 87.2% of Cambium Networks shares are held by institutional investors. 2.0% of Avnet shares are held by company insiders. Comparatively, 57.3% of Cambium Networks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Avnet and Cambium Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avnet	1	1	2	2	2.83
Cambium Networks	1	0	0	0	1.00

Avnet presently has a consensus target price of $93.25, suggesting a potential downside of 6.38%. Given Avnet’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Avnet is more favorable than Cambium Networks.

Summary

Avnet beats Cambium Networks on 13 of the 15 factors compared between the two stocks.

About Avnet

Avnet, Inc., distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions primarily for industrial applications, as well as embedded display solutions comprising touch and passive displays; and develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and Asia. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.

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.