Financial Review: PLDT (NYSE:PHI) vs. Ceragon Networks (NASDAQ:CRNT)

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

Volatility and Risk

PLDT has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

2.3% of PLDT shares are owned by institutional investors. Comparatively, 13.3% of Ceragon Networks shares are owned by institutional investors. 0.7% of PLDT shares are owned by company insiders. Comparatively, 19.0% of Ceragon Networks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares PLDT and Ceragon Networks”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLDT	$3.79 billion	1.08	$565.37 million	$2.59	7.31
Ceragon Networks	$394.19 million	0.53	$24.06 million	$0.16	14.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PLDT	14.67%	28.96%	5.44%
Ceragon Networks	3.57%	13.71%	6.79%

Analyst Recommendations

This is a summary of current ratings for PLDT and Ceragon Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLDT	1	1	0	0	1.50
Ceragon Networks	0	0	5	0	3.00

Ceragon Networks has a consensus target price of $5.30, suggesting a potential upside of 124.58%. Given Ceragon Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Ceragon Networks is more favorable than PLDT.

Summary

Ceragon Networks beats PLDT on 8 of the 14 factors compared between the two stocks.

About PLDT

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.

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.