Clearfield (NASDAQ: CLFD) and West (NASDAQ:WSTC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
This table compares Clearfield and West’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Clearfield and West’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||2.29||$3.84 million||$0.28||43.75|
Clearfield has higher revenue and earnings than West. West is trading at a lower price-to-earnings ratio than Clearfield, indicating that it is currently the more affordable of the two stocks.
West pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. Clearfield does not pay a dividend. West pays out 17.9% of its earnings in the form of a dividend.
Insider and Institutional Ownership
29.0% of Clearfield shares are held by institutional investors. Comparatively, 67.4% of West shares are held by institutional investors. 18.3% of Clearfield shares are held by company insiders. Comparatively, 4.6% of West shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Clearfield and West, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Clearfield currently has a consensus target price of $15.50, indicating a potential upside of 26.53%. West has a consensus target price of $24.50, indicating a potential upside of 4.26%. Given Clearfield’s stronger consensus rating and higher possible upside, research analysts clearly believe Clearfield is more favorable than West.
Clearfield beats West on 9 of the 13 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.
West Company Profile
West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.
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