Clearfield (NASDAQ:CLFD – Get Free Report) and Aviat Networks (NASDAQ:AVNW – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Volatility & Risk
Clearfield has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.
Earnings & Valuation
This table compares Clearfield and Aviat Networks”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clearfield | $166.71 million | 3.59 | -$12.45 million | ($0.14) | -309.29 |
| Aviat Networks | $408.08 million | 0.74 | $10.76 million | ($0.20) | -119.25 |
Aviat Networks has higher revenue and earnings than Clearfield. Clearfield is trading at a lower price-to-earnings ratio than Aviat Networks, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Clearfield and Aviat Networks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clearfield | -1.04% | -0.68% | -0.59% |
| Aviat Networks | -0.53% | 5.06% | 2.18% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Clearfield and Aviat Networks, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clearfield | 0 | 0 | 4 | 0 | 3.00 |
| Aviat Networks | 0 | 0 | 5 | 0 | 3.00 |
Clearfield presently has a consensus target price of $46.75, indicating a potential upside of 7.97%. Aviat Networks has a consensus target price of $37.60, indicating a potential upside of 57.65%. Given Aviat Networks’ higher possible upside, analysts clearly believe Aviat Networks is more favorable than Clearfield.
Institutional & Insider Ownership
88.7% of Clearfield shares are held by institutional investors. Comparatively, 78.6% of Aviat Networks shares are held by institutional investors. 17.8% of Clearfield shares are held by company insiders. Comparatively, 4.1% of Aviat Networks 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.
Summary
Aviat Networks beats Clearfield on 8 of the 13 factors compared between the two stocks.
About Clearfield
Clearfield, Inc. manufactures and sells various fiber connectivity products in the United States and internationally. The company offers FieldSmart, a series of panels, cabinets, wall boxes, and other enclosures; WaveSmart, an optical components integrated for signal coupling, splitting, termination, multiplexing, demultiplexing, and attenuation for integration within its fiber management platform; and active cabinet products. It also provides CraftSmart FiberFirst pedestals, an access terminal that offers a cable management and mounting bracket kit to support the deployment of access terminals; YOURx, an access terminal that provides flexibility with cable mid-span and internal splicing options; and FieldShield, a fiber pathway and protection method for reducing the cost of broadband deployment. In addition, the company offers fiber assemblies; fiber optic and copper cables, microducts, microduct accessories, and tools; and installation and connection accessories for fiber optic networks. It serves community broadband customers, multiple system operators, large regional service providers, and wireline/wireless national telco carriers. The company was formerly known as APA Enterprises, Inc. and changed its name to Clearfield, Inc. in January 2008. Clearfield, Inc. was incorpoarted in 1979 and is headquartered in Minneapolis, Minnesota.
About Aviat Networks
Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, Texas.
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