Analyzing Gilat Satellite Networks (NASDAQ:GILT) and Clearfield (NASDAQ:CLFD)

Gilat Satellite Networks (NASDAQ:GILT) and Clearfield (NASDAQ:CLFD) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gilat Satellite Networks and Clearfield, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilat Satellite Networks	0	2	1	1	2.75
Clearfield	2	0	5	0	2.43

Gilat Satellite Networks currently has a consensus price target of $20.00, indicating a potential upside of 152.53%. Clearfield has a consensus price target of $41.75, indicating a potential upside of 36.26%. Given Gilat Satellite Networks’ stronger consensus rating and higher possible upside, equities analysts clearly believe Gilat Satellite Networks is more favorable than Clearfield.

Volatility & Risk

Gilat Satellite Networks has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Clearfield has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500.

Profitability

This table compares Gilat Satellite Networks and Clearfield’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilat Satellite Networks	6.21%	10.12%	6.79%
Clearfield	-4.71%	1.61%	1.45%

Insider and Institutional Ownership

35.7% of Gilat Satellite Networks shares are held by institutional investors. Comparatively, 88.7% of Clearfield shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by company insiders. Comparatively, 17.8% of Clearfield shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Gilat Satellite Networks and Clearfield”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilat Satellite Networks	$451.66 million	1.29	$20.72 million	$0.44	18.00
Clearfield	$150.13 million	2.77	-$8.05 million	($0.51)	-60.08

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

Summary

Gilat Satellite Networks beats Clearfield on 10 of the 15 factors compared between the two stocks.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel, the United States, Peru, and internationally. It operates in three segments: Satellite Networks, Integrated Solutions, and Network Infrastructure and Services. Its portfolio consists of cloud-based satellite network platform, very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, and defense ground systems and field services. The company also develops, manufactures, and supplies products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems, and solutions, including airborne, ground-mobile satellite systems and solutions; and provides terrestrial, including fiber optic and wireless network, and satellite network construction and operation services. In addition, it provides turnkey integrated solutions, including managed satellite network services, network planning and optimization, remote network operation, call center support, hub and field operations, and communication networks construction and installation services; connectivity services, internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity. The company sells its products and solutions to communication service providers, satellite operators, Mobile Network Operators, and system integrators that use satellite communications to serve enterprise, social inclusion solutions, government and residential users, and defense and homeland security organizations, as well as directly to end-users. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel.

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.