Clearfield (NASDAQ: CLFD) and Calix (NYSE:CALX) 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 profitabiliy, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Earnings and Valuation

This table compares Clearfield and Calix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clearfield $76.58 million 2.09 $9.17 million $0.39 29.49
Calix $477.93 million 0.70 -$46.32 million ($1.01) -6.68

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

Insider & Institutional Ownership

27.1% of Clearfield shares are held by institutional investors. Comparatively, 64.7% of Calix shares are held by institutional investors. 18.3% of Clearfield shares are held by company insiders. Comparatively, 16.5% of Calix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Clearfield has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Calix has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Clearfield and Calix’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%
Calix -10.46% -22.23% -13.79%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Clearfield and Calix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 1 0 3.00
Calix 0 2 1 0 2.33

Clearfield presently has a consensus target price of $15.00, suggesting a potential upside of 30.43%. Calix has a consensus target price of $7.00, suggesting a potential upside of 3.70%. Given Clearfield’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Clearfield is more favorable than Calix.

Summary

Clearfield beats Calix on 10 of the 12 factors compared between the two stocks.

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 Calix

Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.

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