Analyzing ClearOne Communications (NASDAQ:CLRO) and Its Competitors

ClearOne Communications (NASDAQ: CLRO) is one of 26 publicly-traded companies in the “Telephone & telegraph apparatus” industry, but how does it contrast to its peers? We will compare ClearOne Communications to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Dividends

How to Become a New Pot Stock Millionaire

ClearOne Communications pays an annual dividend of $0.28 per share and has a dividend yield of 3.9%. ClearOne Communications pays out 57.1% of its earnings in the form of a dividend. As a group, “Telephone & telegraph apparatus” companies pay a dividend yield of 1.6% and pay out 37.7% of their earnings in the form of a dividend.

Volatility & Risk

ClearOne Communications has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, ClearOne Communications’ peers have a beta of 4.41, indicating that their average stock price is 341% more volatile than the S&P 500.

Profitability

This table compares ClearOne Communications and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ClearOne Communications -26.92% 0.22% 0.19%
ClearOne Communications Competitors -85.68% -12.79% -6.72%

Valuation and Earnings

This table compares ClearOne Communications and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ClearOne Communications $48.64 million $2.44 million 14.59
ClearOne Communications Competitors $662.53 million $72.22 million 35.71

ClearOne Communications’ peers have higher revenue and earnings than ClearOne Communications. ClearOne Communications is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ClearOne Communications and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ClearOne Communications 0 0 1 0 3.00
ClearOne Communications Competitors 275 769 890 41 2.35

ClearOne Communications currently has a consensus target price of $8.50, suggesting a potential upside of 18.88%. As a group, “Telephone & telegraph apparatus” companies have a potential upside of 21.34%. Given ClearOne Communications’ peers higher probable upside, analysts clearly believe ClearOne Communications has less favorable growth aspects than its peers.

Insider and Institutional Ownership

6.7% of ClearOne Communications shares are held by institutional investors. Comparatively, 40.9% of shares of all “Telephone & telegraph apparatus” companies are held by institutional investors. 9.5% of ClearOne Communications shares are held by company insiders. Comparatively, 22.6% of shares of all “Telephone & telegraph apparatus” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

ClearOne Communications peers beat ClearOne Communications on 8 of the 15 factors compared.

ClearOne Communications Company Profile

ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, streaming, and digital signage solutions for audio/voice and visual communications in the United States and internationally. The company offers various professional audio communication products, including professional conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; and professional microphones for use in various applications. It also provides unified communications audio end points comprising traditional tabletop conferencing phones used in conference rooms and offices; and personal conferencing products that could be used with PCs, laptops, tablets, smartphones, and other portable devices. The company's audio communication products and unified communications audio end points enhance communication during a conference call by eliminating echo and background noise. In addition, it offers visual communication products, such as video conferencing products; streaming products, which deliver the Internet protocol (IP) A/V experience by streaming time sensitive high definition audio and video and control over TCP/IP networks; and digital signage systems. The company sells its commercial products to a network of independent audiovisual, information technology, and telecommunications distributors, as well as independent systems integrators, dealers, value-added resellers, and end-users. ClearOne, Inc. was founded in 1983 and is headquartered in Salt Lake City, Utah.

Receive News & Ratings for ClearOne Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ClearOne Communications and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply