Commscope (COMM) vs. Clearfield (CLFD) Head to Head Analysis

Commscope (NASDAQ: COMM) and Clearfield (NASDAQ:CLFD) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Commscope 4.21% 29.11% 5.97%
Clearfield 5.20% 5.95% 5.50%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Commscope and Clearfield, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commscope 0 5 7 0 2.58
Clearfield 0 0 2 0 3.00

Commscope currently has a consensus target price of $41.33, suggesting a potential upside of 6.06%. Clearfield has a consensus target price of $15.50, suggesting a potential upside of 25.51%. Given Clearfield’s stronger consensus rating and higher possible upside, analysts clearly believe Clearfield is more favorable than Commscope.

Institutional and Insider Ownership

29.0% of Clearfield shares are held by institutional investors. 3.3% of Commscope shares are held by company insiders. Comparatively, 18.3% of Clearfield 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.

Volatility and Risk

Commscope has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Clearfield has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commscope $4.92 billion 1.51 $222.83 million $0.99 39.36
Clearfield $73.95 million 2.31 $3.84 million $0.28 44.11

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

Summary

Clearfield beats Commscope on 8 of the 14 factors compared between the two stocks.

About Commscope

CommScope Holding Company, Inc. (CommScope) is a provider of infrastructure solutions for the core, access and edge layers of communications networks. The Company operates through two segments: CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). Its portfolio includes wireless and fiber optic solutions. The Company’s solutions are found in the venues and outdoor spaces, including in data centers and buildings of all shapes, sizes and complexities; at wireless cell sites; in telecom central offices and cable head ends; in fiber-to-the-X (FTTX) deployments, and in airports, trains and tunnels. As of December 31, 2016, it served customers in over 100 countries through a network of more than 30 manufacturing and distribution facilities located around the globe. Its customers include global telecommunication operators and enterprise customers, including Fortune 500 enterprises and multi-system operators (MSOs).

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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