Analyzing Clearfield (NASDAQ:CLFD) and HTC (OTCMKTS:HTCXF)

Clearfield (NASDAQ:CLFD) and HTC (OTCMKTS:HTCXF) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearfield	$179.32 million	2.40	-$12.45 million	$0.01	3,116.00
HTC	$95.93 million	N/A	-$106.31 million	($0.12)	-10.19

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

Profitability

This table compares Clearfield and HTC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearfield	0.11%	0.07%	0.06%
HTC	48.73%	6.63%	3.32%

Analyst Recommendations

This is a breakdown of current ratings for Clearfield and HTC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearfield	0	3	2	0	2.40
HTC	0	0	0	0	0.00

Clearfield presently has a consensus target price of $47.50, indicating a potential upside of 52.44%. Given Clearfield’s stronger consensus rating and higher probable upside, equities analysts clearly believe Clearfield is more favorable than HTC.

Summary

Clearfield beats HTC on 9 of the 12 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 HTC

HTC Corporation designs and manufactures mobile devices. Its portfolio includes smartphones and tablets powered by the Android or Windows Phone operating systems. It offers its products under the brand named HTC, including HTC Wildfire, HTC Desire, HTC Flyer, HTC ChaCha, HTC Salsa, HTC Incredible S, HTC Sensation, HTC 7 Mozart, HTC Aria and HTC 7 Trophy, among others. HTC Corporation is headquartered in Taoyuan County, Taiwan.