Riverbed Technology (RVBD) and Clearfield (CLFD) Financial Analysis

Riverbed Technology (NASDAQ: RVBD) and Clearfield (NASDAQ:CLFD) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riverbed Technology 0 0 0 0 N/A
Clearfield 0 0 2 0 3.00

Clearfield has a consensus target price of $15.50, suggesting a potential upside of 26.53%. Given Clearfield’s higher probable upside, analysts plainly believe Clearfield is more favorable than Riverbed Technology.

Insider & Institutional Ownership

29.0% of Clearfield shares are owned by institutional investors. 18.3% of Clearfield shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Riverbed Technology has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Clearfield has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Riverbed Technology and Clearfield’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Riverbed Technology 17.55% 24.83% 10.64%
Clearfield 5.20% 5.95% 5.50%

Earnings and Valuation

This table compares Riverbed Technology and Clearfield’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Riverbed Technology N/A N/A N/A $0.44 47.70
Clearfield $73.95 million 2.29 $3.84 million $0.28 43.75

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

Summary

Riverbed Technology beats Clearfield on 6 of the 11 factors compared between the two stocks.

About Riverbed Technology

Riverbed Technology, Inc. (Riverbed) is a provider of application performance infrastructure. The Company offers a platform to deliver, control and optimize IT resources across the hybrid enterprise. The Riverbed Application Performance Platform delivers application performance infrastructure solutions with a focus on two areas, which include application acceleration and performance management. The Wide area network (WAN) optimization for application acceleration includes Riverbed SteelHead, which provides WAN optimization solution, and Riverbed SteelFusion, which provides branch converged infrastructure. The Company’s application acceleration solutions also include Riverbed SteelApp, an application delivery controller (ADC). The Company’s performance management solution includes Riverbed SteelCentral, a performance management suite that combines its application-aware network performance management and application performance management control suite.

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.

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