Critical Analysis: Clearfield (NASDAQ:CLFD) and Vistance Networks (NASDAQ:VISN)

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

Insider and Institutional Ownership

88.7% of Clearfield shares are held by institutional investors. Comparatively, 88.0% of Vistance Networks shares are held by institutional investors. 17.8% of Clearfield shares are held by insiders. Comparatively, 3.5% of Vistance Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Clearfield and Vistance Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearfield	-4.71%	1.61%	1.45%
Vistance Networks	247.69%	32.28%	4.61%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Clearfield and Vistance Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearfield	2	0	5	0	2.43
Vistance Networks	0	4	0	0	2.00

Clearfield presently has a consensus price target of $41.75, suggesting a potential upside of 30.35%. Vistance Networks has a consensus price target of $19.33, suggesting a potential upside of 195.62%. Given Vistance Networks’ higher possible upside, analysts plainly believe Vistance Networks is more favorable than Clearfield.

Earnings & Valuation

This table compares Clearfield and Vistance Networks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearfield	$150.13 million	2.90	-$8.05 million	($0.51)	-62.80
Vistance Networks	$1.99 billion	0.76	$2.28 billion	$30.80	0.21

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

Risk & Volatility

Clearfield has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, Vistance Networks has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500.

Summary

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

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.

About Vistance Networks

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.