Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Communications & Networking industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Communications & Networking Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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7 Undervalued Communications & Networking Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Communications & Networking industry for Wednesday, March 06, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Communications & Networking industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Amplitech Group Inc | AMPG | 1.13 | na | na | (0.3%) | 0.66 | na | B |
| Cambium Networks Corp | CMBM | 0.53 | na | na | (2.4%) | 0.90 | na | B |
| Ituran Location and Control Ltd. (US) | ITRN | 1.67 | 11.7 | 5.8 | 7.9% | 3.03 | 10.3 | B |
| Resideo Technologies Inc | REZI | 0.52 | 15.5 | 5.2 | 0.5% | 1.17 | 9.7 | A |
| Silicom Ltd | SILC | 0.80 | na | 10.9 | 2.9% | 0.58 | na | A |
| UTStarcom Holdings Corp | UTSI | 1.81 | na | 4.0 | (1.1%) | na | na | B |
| Vislink Technologies Inc | VISL | 0.31 | na | na | (0.5%) | 0.22 | na | A |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Amplitech Group Inc’s Value Grade
Value Grade:
| Metric | Score | AMPG | Industry Median |
| Price/Sales | 37 | 1.13 | 1.17 |
| Price/Earnings | na | na | 20.9 |
| EV/EBITDA | na | na | 12.1 |
| Shareholder Yield | 52 | (0.3%) | (0.5%) |
| Price/Book Value | 16 | 0.66 | 1.69 |
| Price/Free Cash Flow | na | na | 18.2 |
AmpliTech Group, Inc. is engaged in designing, engineering, and assembling micro-wave component-based amplifiers. The Company's products consist of radio frequency (RF) amplifiers and related subsystems, operating at multiple frequencies from 50 kilohertz (kHz) to 44 gigahertz (GHz), including low noise amplifiers, medium power amplifiers, cryogenic amplifiers, and custom assembly designs for the global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets. The Company also offers non-recurring engineering services on a project-by-project basis. Its Specialty division Microwave designs and manufactures satellite communication (SATCOM) microwave components, RF subsystems, specialized electronic assemblies for the military and commercial markets, flexible and rugged waveguides, and waveguide adapters. The Company?s AmpliTech Group MMIC Design Center (AGMDC) division designs, develops, and manufactures signal processing components for satellites.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Amplitech Group Inc has a Value Score of 74, which is considered to be undervalued.
When you look at Amplitech Group Inc’s price-to-sales ratio at 1.13 compared to the industry median at 1.17, this company has a lower price relative to revenue compared to its peers. This could make Amplitech Group Inc’s stock more attractive for value investors.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Amplitech Group Inc’s shareholder yield is higher than its industry median ratio of (0.51%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Amplitech Group Inc’s price-to-book ratio is lower than its industry median ratio of 1.69. This could make Amplitech Group Inc more attractive to investors looking for a new addition to their portfolio.
Cambium Networks Corp’s Value Grade
Value Grade:
| Metric | Score | CMBM | Industry Median |
| Price/Sales | 21 | 0.53 | 1.17 |
| Price/Earnings | na | na | 20.9 |
| EV/EBITDA | na | na | 12.1 |
| Shareholder Yield | 67 | (2.4%) | (0.5%) |
| Price/Book Value | 25 | 0.90 | 1.69 |
| Price/Free Cash Flow | na | na | 18.2 |
Cambium Networks Corporation is a technology company. The Company designs, develops, and manufactures wireless broadband and Wi-Fi networking infrastructure solutions for a range of applications, including broadband access, wireless backhaul, Industrial Internet of Things (IIoT), public safety communications and Wi-Fi access. The Company?s products are used by businesses, governments, and service providers to build, expand and upgrade broadband networks. Its wireless fabric includes intelligent radios, smart antennas, radio frequency, algorithms, wireless-aware switches, and its on-premise or cloud-based network management software. It provides solutions, such as closed-circuit television (CCTV) backhaul, enterprise networking, hybrid networks, outdoor wireless for private networks, and small cell backhaul. Its Wi-Fi portfolio includes cnPilot cloud-managed Wi-Fi solutions; cnMatrix cloud-managed wireless-aware switching solutions; Xirrus Wi-Fi solutions, and Xirrus XMS management.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Cambium Networks Corp has a Value Score of 69, which is considered to be undervalued.
Cambium Networks Corp’s price-to-book ratio is higher than its peers. This could make Cambium Networks Corp less attractive for value investors when compared to the industry median at 1.69.
You can read more about Cambium Networks Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Ituran Location and Control Ltd. (US)’s Value Grade
Value Grade:
| Metric | Score | ITRN | Industry Median |
| Price/Sales | 50 | 1.67 | 1.17 |
| Price/Earnings | 31 | 11.7 | 20.9 |
| EV/EBITDA | 23 | 5.8 | 12.1 |
| Shareholder Yield | 11 | 7.9% | (0.5%) |
| Price/Book Value | 70 | 3.03 | 1.69 |
| Price/Free Cash Flow | 30 | 10.3 | 18.2 |
Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Ituran Location and Control Ltd. (US) has a Value Score of 72, which is considered to be undervalued.
Ituran Location and Control Ltd. (US)’s price-earnings ratio is 11.7 compared to the industry median at 20.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Ituran Location and Control Ltd. (US) more attractive for value investors.
Ituran Location and Control Ltd. (US)’s price-to-book ratio is lower than its peers. This could make Ituran Location and Control Ltd. (US) more attractive for value investors when compared to the industry median at 1.69.
You can read more about Ituran Location and Control Ltd. (US)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Resideo Technologies Inc’s Value Grade
Value Grade:
| Metric | Score | REZI | Industry Median |
| Price/Sales | 20 | 0.52 | 1.17 |
| Price/Earnings | 43 | 15.5 | 20.9 |
| EV/EBITDA | 18 | 5.2 | 12.1 |
| Shareholder Yield | 40 | 0.5% | (0.5%) |
| Price/Book Value | 36 | 1.17 | 1.69 |
| Price/Free Cash Flow | 29 | 9.7 | 18.2 |
Resideo Technologies, Inc. is a manufacturer and developer of technology-driven products and components. It has two segments: Products and Solutions, and ADI Global Distribution. Products and Solutions segment offers temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, smoke and carbon monoxide detection home safety products and fire suppression products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software. ADI Global Distribution segment is a wholesale distributor of low-voltage security products including security, fire, access control and video products, and participates significantly in the related markets of smart home, access control, power, audio, ProAV, networking, communications, wire and cable, enterprise connectivity, and structured wiring products.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Resideo Technologies Inc has a Value Score of 81, which is considered to be undervalued.
Resideo Technologies Inc’s price-earnings ratio is 15.5 compared to the industry median at 20.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Resideo Technologies Inc more attractive for value investors.
Resideo Technologies Inc’s price-to-book ratio is higher than its peers. This could make Resideo Technologies Inc less attractive for value investors when compared to the industry median at 1.69.
You can read more about Resideo Technologies Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Silicom Ltd’s Value Grade
Value Grade:
| Metric | Score | SILC | Industry Median |
| Price/Sales | 29 | 0.80 | 1.17 |
| Price/Earnings | na | na | 20.9 |
| EV/EBITDA | 54 | 10.9 | 12.1 |
| Shareholder Yield | 27 | 2.9% | (0.5%) |
| Price/Book Value | 13 | 0.58 | 1.69 |
| Price/Free Cash Flow | na | na | 18.2 |
Silicom Ltd. (Silicom) is engaged in the design, manufacture, marketing and support of networking and data infrastructure solutions for a range of servers, server-based systems and communications devices. The Company's products include server network interface cards with and without bypass (Server Adapters); Intelligent and programmable cards, with features, such as encryption, acceleration, data compression, redirection, time stamping, network capture solutions, field programmable gate array (FPGA) based ultra-low latency solutions, and/or other offload features and/or compute blades (Smart Cards), and standalone Products. The Company's market segments for its products include network appliances; servers; data storage, including Big Data; The Cloud, virtualized data centers, with and without software-defined networking (SDN), and Internet of Things (IOT).
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Silicom Ltd has a Value Score of 82, which is considered to be undervalued.
Silicom Ltd’s price-to-book ratio is higher than its peers. This could make Silicom Ltd less attractive for value investors when compared to the industry median at 1.69.
You can read more about Silicom Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
UTStarcom Holdings Corp’s Value Grade
Value Grade:
| Metric | Score | UTSI | Industry Median |
| Price/Sales | 53 | 1.81 | 1.17 |
| Price/Earnings | na | na | 20.9 |
| EV/EBITDA | 12 | 4.0 | 12.1 |
| Shareholder Yield | 59 | (1.1%) | (0.5%) |
| Price/Book Value | na | na | 1.69 |
| Price/Free Cash Flow | na | na | 18.2 |
UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
UTStarcom Holdings Corp has a Value Score of 62, which is considered to be undervalued.
You can read more about UTStarcom Holdings Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Vislink Technologies Inc’s Value Grade
Value Grade:
| Metric | Score | VISL | Industry Median |
| Price/Sales | 12 | 0.31 | 1.17 |
| Price/Earnings | na | na | 20.9 |
| EV/EBITDA | na | na | 12.1 |
| Shareholder Yield | 54 | (0.5%) | (0.5%) |
| Price/Book Value | 4 | 0.22 | 1.69 |
| Price/Free Cash Flow | na | na | 18.2 |
Vislink Technologies Inc. is a global technology company. It is specialized in collecting, delivering and managing live video and associated data from the action scene to the viewing screen. It provides solutions for collecting live news, sports, entertainment and news events for the broadcast markets. It also furnishes the surveillance and defense markets with real-time video intelligence solutions using various tailored transmission products. It also provides professional and technical services to terrestrial microwave, satellite, fiber optic, surveillance and wireless communications systems. It delivers a portfolio of solutions for live news, sports and entertainment industries. These solutions include video collection, transmission, management, and distribution via microwave, satellite, cellular, Internet protocol, MESH and bonded cellular/5G networks. It also provide solutions utilizing artificial intelligence technologies to provide automated news and sporting events coverage.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Vislink Technologies Inc has a Value Score of 92, which is considered to be undervalued.
Vislink Technologies Inc’s price-to-book ratio is higher than its peers. This could make Vislink Technologies Inc less attractive for value investors when compared to the industry median at 1.69.
You can read more about Vislink Technologies Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Communications & Networking Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Communications & Networking stocks as well as other industrys.
Choosing Which of the 7 Best Communications & Networking Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Amplitech Group Inc stock has a Value Grade of B.
- Cambium Networks Corp stock has a Value Grade of B.
- Ituran Location and Control Ltd. (US) stock has a Value Grade of B.
- Resideo Technologies Inc stock has a Value Grade of A.
- Silicom Ltd stock has a Value Grade of A.
- UTStarcom Holdings Corp stock has a Value Grade of B.
- Vislink Technologies Inc stock has a Value Grade of A.
Now that you have a bit more background about each of the 7 undervalued stocks in the Communications & Networking industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Communications & Networking Stocks
Want to learn more about Communications & Networking stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 7 Undervalued Communications & Networking Stocks for Wednesday, March 06
- 7 Undervalued Communications & Networking Stocks for Tuesday, March 05
- Why Clearfield Inc’s (CLFD) Stock Is Down 4.14%
- Why Infinera Corp’s (INFN) Stock Is Down 4.10%
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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