Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Israeli wireless backhaul specialist Ceragon Networks
With that in mind, let's take a closer look at Ceragon's business and see what CAPS investors are saying about the stock right now.
Ceragon facts
| Headquarters (Founded) | Tel Aviv, Israel (1996) |
| Market Cap | $455 million |
| Industry | Communications equipment |
| Trailing-12-Month Revenue | $249.85 million |
| Management |
CEO Ira Palti (since 2005) CFO Tsipi Kagan (since 2010) |
| Return on Equity (Average, Past 3 Years) | 8.1% |
| Cash/Debt | $68.44 million / $0 |
| Competitors |
Alcatel-Lucent
DragonWave
LM Ericsson |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 1,553 members who have rated Ceragon believe the stock will outperform the S&P 500 going forward. These bulls include kdeken and fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 5% of our community.
Just last week, kdeken nicely summed up the Ceragon bull case: "Low-cost, high-performance mobile communication play focused on backhaul for expanding markets."
Over the next five years, Ceragon is even expected to grow its bottom line (54% per annum) at a much faster pace than rivals Alcatel-Lucent (5.0%), DragonWave (15.0%), and LM Ericsson (9.5%), as well as other communication equipment plays like QUALCOMM
Anders expands on the outperform argument:
I find it both amusing and encouraging to see Ceragon CEO Ira Palti comparing his company to the likes of LM Ericsson. "We have only two primary competitors globally," Palti said in the earnings call. "Our strength compared to each of those competitors are difficult to replicate. More data in the network." Given that Ceragon sells some of its equipment through OEM partner Nokia Siemens and looking at the limited reach of the other wireless backhaul providers, I have to think that he's talking about Ericsson and DragonWave.
Not bad company to keep, I'd say. There's a blatant difference of scale, of course -- but if Ceragon keeps up the current growth rate, the comparison to Ericsson won't sound absurd in a couple of years.
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