Analyzing America Movil (NYSE:AMX) and Ceragon Networks (NASDAQ:CRNT)

America Movil (NYSE:AMX) and Ceragon Networks (NASDAQ:CRNT) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Risk & Volatility

America Movil has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for America Movil and Ceragon Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
America Movil	1	2	2	1	2.50
Ceragon Networks	0	0	5	0	3.00

America Movil currently has a consensus price target of $16.78, suggesting a potential downside of 9.17%. Ceragon Networks has a consensus price target of $5.60, suggesting a potential upside of 144.54%. Given Ceragon Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Ceragon Networks is more favorable than America Movil.

Profitability

This table compares America Movil and Ceragon Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
America Movil	6.11%	12.60%	3.14%
Ceragon Networks	5.75%	19.04%	9.23%

Institutional and Insider Ownership

6.3% of America Movil shares are owned by institutional investors. Comparatively, 13.3% of Ceragon Networks shares are owned by institutional investors. 1.0% of America Movil shares are owned by insiders. Comparatively, 19.0% of Ceragon Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares America Movil and Ceragon Networks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
America Movil	$47.69 billion	1.18	$1.13 billion	$0.94	19.65
Ceragon Networks	$394.19 million	0.52	$24.06 million	$0.26	8.81

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

Summary

Ceragon Networks beats America Movil on 8 of the 15 factors compared between the two stocks.

About America Movil

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.

About Ceragon Networks

Ceragon Networks Ltd., together with its subsidiaries, provides wireless transport solutions for cellular operators and other wireless service providers in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company's solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the service provider's network. It also provides IP-20 all-outdoor solutions, such as IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V; IP-20 split-mount, all-indoor solutions comprising IP-20N/IP-20A, IP-20F, and IP-20G; and IP-50 disaggregated solutions, including IP-50E, IP-50EX, IP-50C, IP-50CX, and IP-50FX for various short-haul, long-haul, fronthaul, small cells, routing, and enterprise access applications. In addition, the company offers network and radio planning, site surveys, solutions development, installation, network rollout, wireless transport network auditing and optimization, maintenance, training, and other services. It serves internet service providers, municipalities, government, utilities, and maritime communications broadcasters and defense, as well as oil and gas companies, public safety organizations, business and public institutions, broadcasters, energy utilities, and private communications networks. The company sells its products through direct sales, original equipment manufacturers, resellers, distributors, and system integrators. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was incorporated in 1996 and is headquartered in Rosh Ha'Ayin, Israel.