Critical Analysis: Cambium Networks (NASDAQ:CMBM) versus TD SYNNEX (NYSE:SNX)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TD SYNNEX and Cambium Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TD SYNNEX	0	2	8	0	2.80
Cambium Networks	1	0	0	0	1.00

TD SYNNEX presently has a consensus target price of $295.67, indicating a potential upside of 13.26%. Given TD SYNNEX’s stronger consensus rating and higher probable upside, research analysts plainly believe TD SYNNEX is more favorable than Cambium Networks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TD SYNNEX	1.63%	15.37%	3.82%
Cambium Networks	N/A	N/A	N/A

Valuation and Earnings

This table compares TD SYNNEX and Cambium Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TD SYNNEX	$62.51 billion	0.33	$827.66 million	$13.97	18.69
Cambium Networks	$172.22 million	0.07	-$77.42 million	($2.10)	-0.19

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

Risk & Volatility

TD SYNNEX has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Cambium Networks has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Insider & Institutional Ownership

84.0% of TD SYNNEX shares are held by institutional investors. Comparatively, 87.2% of Cambium Networks shares are held by institutional investors. 0.7% of TD SYNNEX 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

TD SYNNEX beats Cambium Networks on 11 of the 14 factors compared between the two stocks.

About TD SYNNEX

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfillment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was founded in 1974 and is headquartered in Fremont, California.

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.