Clearfield (NASDAQ: CLFD) and Infinera Corporation (NASDAQ:INFN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Institutional & Insider Ownership

27.4% of Clearfield shares are held by institutional investors. Comparatively, 86.7% of Infinera Corporation shares are held by institutional investors. 18.3% of Clearfield shares are held by company insiders. Comparatively, 2.9% of Infinera Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Clearfield and Infinera Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 1 0 3.00
Infinera Corporation 1 4 9 1 2.67

Clearfield currently has a consensus target price of $15.00, indicating a potential upside of 21.95%. Infinera Corporation has a consensus target price of $11.82, indicating a potential upside of 39.86%. Given Infinera Corporation’s higher probable upside, analysts clearly believe Infinera Corporation is more favorable than Clearfield.

Profitability

This table compares Clearfield and Infinera Corporation’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%
Infinera Corporation -18.18% -12.39% -7.88%

Valuation & Earnings

This table compares Clearfield and Infinera Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clearfield $76.58 million 2.24 $9.17 million $0.39 31.54
Infinera Corporation $718.84 million 1.74 -$60.74 million ($0.90) -9.39

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

Risk and Volatility

Clearfield has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Infinera Corporation has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Summary

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

Clearfield Company Profile

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.

Infinera Corporation Company Profile

Infinera Corporation provides optical transport networking equipment, software and services to telecommunications service providers, Internet content providers (ICPs), cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers and government entities across the globe. The Company’s portfolio consists of the Infinera DTN-X Family, the Infinera DTN platform, the Infinera Cloud Xpress Family, the Infinera XTM Series, the Infinera XTG Series and the Infinera FlexILS platform, addressing long-haul, subsea and metro networks end-to-end. Its technology includes Infinera Intelligent Transport Network Architecture, Infinera Photonic Integrated Circuits, Infinera FlexCoherent Processor, Super-Channels, Sliceable Photonics, Disaggregation, Integrated Digital Switching, Infinera Instant Bandwidth, Infinera Packet-Optical Transport, Multi-layer Switching and Optimization, and Management, Control and Security.

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