Ceragon Networks Ltd. (CRNT) vs Optical Cable Corporation (OCC)

Ceragon Networks Ltd. and Optical Cable Corporation are both Communication Equipment companies. Ceragon Networks Ltd. is the larger, with a market value of $193.6M against $126.3M — 1.5× the size. Ceragon Networks Ltd. has negative trailing earnings, so its P/E is not meaningful; Optical Cable Corporation trades at 50.1×. Optical Cable Corporation grew revenue faster over the last twelve months: 13.9% against −8.88%. Optical Cable Corporation has the higher net margin (3.10% vs −0.95%) and the higher return on invested capital (12.7% vs 3.53%). Across the 20 metrics below, Optical Cable Corporation leads on 11 and Ceragon Networks Ltd. on 9.

Valuation

Metric CRNT OCC Communication Equipment median
P/E n/m 50.10 33.61
P/S 0.55 1.55 2.16
P/B 1.12 8.72 2.40
Price to free cash flow 16.10 313.16 25.02
EV/EBITDA 7.55 30.70 13.78
EV/Sales 0.49 1.58 2.27
Earnings yield (1.56%) 2.00% (0.65%)
Free cash flow yield 6.21% 0.32% 1.61%

Profitability

Metric CRNT OCC Communication Equipment median
Gross margin 33.69% 34.28% 39.47%
Operating margin 2.43% 4.20% 2.39%
Net margin (0.95%) 3.10% (0.74%)
Free cash flow margin 5.19% 0.50% 1.39%
Return on equity (1.91%) 15.56% (1.91%)
Return on assets (1.02%) 6.03% (0.20%)
Return on invested capital 3.53% 12.73% 0.72%

Growth

Metric CRNT OCC Communication Equipment median
Revenue growth (TTM) (8.88%) 13.86% 11.48%
EPS growth (last fiscal year) (107.41%) 66.67% —
Revenue growth, 5-year CAGR 5.20% 5.73% 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRNT OCC Communication Equipment median
Debt to equity 0.07 0.18 0.06
Current ratio 1.85 2.17 2.01
Net debt to EBITDA (0.90) 6.59 0.67

Dividend

Metric CRNT OCC Communication Equipment median
Dividend yield — — 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric CRNT OCC Communication Equipment median
Market cap 193.60m 126.26m 563.45m

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