Reviewing Clearfield (CLFD) & EMCORE Corporation (EMKR)

Clearfield (NASDAQ: CLFD) and EMCORE Corporation (NASDAQ:EMKR) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Clearfield and EMCORE Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 1 0 3.00
EMCORE Corporation 0 1 3 0 2.75

Clearfield currently has a consensus target price of $15.00, suggesting a potential upside of 7.53%. EMCORE Corporation has a consensus target price of $11.88, suggesting a potential upside of 56.25%. Given EMCORE Corporation’s higher probable upside, analysts plainly believe EMCORE Corporation is more favorable than Clearfield.

Earnings and Valuation

This table compares Clearfield and EMCORE Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Clearfield $75.29 million 2.58 $8.01 million $0.39 35.77
EMCORE Corporation $92.00 million 2.22 $8.26 million $0.28 27.14

EMCORE Corporation has higher revenue and earnings than Clearfield. EMCORE Corporation is trading at a lower price-to-earnings ratio than Clearfield, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Clearfield has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, EMCORE Corporation has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

27.0% of Clearfield shares are owned by institutional investors. Comparatively, 77.3% of EMCORE Corporation shares are owned by institutional investors. 18.3% of Clearfield shares are owned by insiders. Comparatively, 0.8% of EMCORE Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Clearfield and EMCORE Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearfield 6.87% 8.12% 7.51%
EMCORE Corporation 6.73% 9.25% 7.71%

About Clearfield

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.

About EMCORE Corporation

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.

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