Critical Comparison: Clearfield (CLFD) and Comtech Telecomm. (CMTL)

Clearfield (NASDAQ: CLFD) and Comtech Telecomm. (NASDAQ:CMTL) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Profitability

This table compares Clearfield and Comtech Telecomm.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearfield 5.20% 5.95% 5.50%
Comtech Telecomm. 3.11% 1.87% 1.04%

Analyst Ratings

This is a summary of recent ratings and price targets for Clearfield and Comtech Telecomm., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 2 0 3.00
Comtech Telecomm. 0 2 3 0 2.60

Clearfield currently has a consensus target price of $15.50, indicating a potential upside of 28.63%. Comtech Telecomm. has a consensus target price of $20.63, indicating a potential downside of 8.05%. Given Clearfield’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Clearfield is more favorable than Comtech Telecomm..

Dividends

Comtech Telecomm. pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Clearfield does not pay a dividend. Comtech Telecomm. pays out 56.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

29.0% of Clearfield shares are held by institutional investors. Comparatively, 85.9% of Comtech Telecomm. shares are held by institutional investors. 18.3% of Clearfield shares are held by company insiders. Comparatively, 7.0% of Comtech Telecomm. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Clearfield and Comtech Telecomm.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clearfield $73.95 million 2.25 $3.84 million $0.28 43.04
Comtech Telecomm. $550.37 million 0.96 $15.82 million $0.71 31.59

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

Volatility & Risk

Clearfield has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Comtech Telecomm. has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Summary

Clearfield beats Comtech Telecomm. on 9 of the 16 factors compared between the two stocks.

Clearfield Company Profile

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.

Comtech Telecomm. Company Profile

Comtech Telecommunications Corp. designs, develops, produces and markets products, systems and services for communications solutions. The Company operates through two segments: Commercial Solutions and Government Solutions. It offers communications solutions, including command and control technologies, safety and security technologies and enterprise technologies. Its Commercial Solutions segment provides satellite communications (such as satellite earth station modems and traveling wave tube amplifiers), public safety systems (such as next generation 911 technologies) and enterprise application technologies (such as messaging and trusted location-based technologies). The Government Solutions segment includes command and control technologies, troposcatter technologies, and radio frequency power and switching technologies. It serves system and network suppliers in the global satellite, defense, broadcast and aerospace industries, and the United States federal government, among others.

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