ClearOne (NASDAQ:CLRO – Get Free Report) and Optimum Communications (NYSE:OPTU – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Insider & Institutional Ownership
9.6% of ClearOne shares are owned by institutional investors. Comparatively, 54.8% of Optimum Communications shares are owned by institutional investors. 0.7% of ClearOne shares are owned by insiders. Comparatively, 43.4% of Optimum Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for ClearOne and Optimum Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ClearOne | 1 | 0 | 0 | 0 | 1.00 |
| Optimum Communications | 3 | 6 | 0 | 0 | 1.67 |
Risk and Volatility
ClearOne has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Optimum Communications has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Earnings & Valuation
This table compares ClearOne and Optimum Communications”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ClearOne | $11.39 million | 1.72 | -$26.08 million | ($3.42) | -2.13 |
| Optimum Communications | $8.59 billion | 0.05 | -$1.87 billion | ($9.93) | -0.09 |
ClearOne has higher earnings, but lower revenue than Optimum Communications. ClearOne is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ClearOne and Optimum Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ClearOne | N/A | -121.30% | -48.78% |
| Optimum Communications | -55.01% | N/A | -0.72% |
Summary
Optimum Communications beats ClearOne on 9 of the 13 factors compared between the two stocks.
About ClearOne
ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio 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; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It provides professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. In addition, the company offers video products, such as video conferencing and collaboration solutions; professional-grade cameras; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. It sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. ClearOne, Inc. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
About Optimum Communications
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.
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