Clearfield (NASDAQ: CLFD) and Commscope (NASDAQ:COMM) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Clearfield has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Commscope has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
This is a breakdown of current ratings for Clearfield and Commscope, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Clearfield presently has a consensus price target of $15.50, indicating a potential upside of 27.05%. Commscope has a consensus price target of $41.33, indicating a potential upside of 7.36%. Given Clearfield’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Clearfield is more favorable than Commscope.
Earnings and Valuation
This table compares Clearfield and Commscope’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Clearfield||$73.95 million||2.28||$3.84 million||$0.28||43.57|
|Commscope||$4.92 billion||1.49||$222.83 million||$0.99||38.89|
Commscope has higher revenue and earnings than Clearfield. Commscope is trading at a lower price-to-earnings ratio than Clearfield, indicating that it is currently the more affordable of the two stocks.
This table compares Clearfield and Commscope’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
29.0% of Clearfield shares are owned by institutional investors. 18.5% of Clearfield shares are owned by company insiders. Comparatively, 3.3% of Commscope shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Clearfield beats Commscope on 8 of the 14 factors compared between the two stocks.
Clearfield, Inc. manufactures, markets and sells fiber management and enclosure platform that consolidates, distributes and protects fiber as it moves from the inside plant to the outside plant and all the way to the home, business and cell site. The Company’s products include Clearview Cassette, which is the building block of its product platform; Connectivity and Optical Components; FieldSmart, which is a series of panels, cabinets, wall boxes and other enclosures that house the Clearview components; FieldShield, which is a fiber delivery method for broadband deployment; CraftSmart, which is a line of optical protection field enclosures, and Cable Assemblies. Its products are sold across broadband service providers, including traditional telephone companies, competitive local exchange carriers, multiple service operators (cable television), wireless service providers, and municipal-owned utilities that utilize fiber in their service offerings to businesses and consumers.
CommScope Holding Company, Inc. (CommScope) is a provider of infrastructure solutions for the core, access and edge layers of communications networks. The Company operates through two segments: CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). Its portfolio includes wireless and fiber optic solutions. The Company’s solutions are found in the venues and outdoor spaces, including in data centers and buildings of all shapes, sizes and complexities; at wireless cell sites; in telecom central offices and cable head ends; in fiber-to-the-X (FTTX) deployments, and in airports, trains and tunnels. As of December 31, 2016, it served customers in over 100 countries through a network of more than 30 manufacturing and distribution facilities located around the globe. Its customers include global telecommunication operators and enterprise customers, including Fortune 500 enterprises and multi-system operators (MSOs).
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