Clearfield (NASDAQ: CLFD) and Motorola Solutions (NYSE:MSI) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Motorola Solutions pays an annual dividend of $2.08 per share and has a dividend yield of 2.1%. Clearfield does not pay a dividend. Motorola Solutions pays out -192.6% of its earnings in the form of a dividend. Motorola Solutions has raised its dividend for 7 consecutive years.

Profitability

This table compares Clearfield and Motorola Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearfield 5.39% 6.00% 5.60%
Motorola Solutions -2.43% -75.81% 10.39%

Institutional and Insider Ownership

29.7% of Clearfield shares are held by institutional investors. Comparatively, 87.1% of Motorola Solutions shares are held by institutional investors. 18.5% of Clearfield shares are held by company insiders. Comparatively, 2.5% of Motorola Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Clearfield and Motorola Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clearfield $73.95 million 2.25 $3.84 million $0.29 41.55
Motorola Solutions $6.38 billion 2.57 -$155.00 million ($1.08) -93.80

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

Analyst Recommendations

This is a summary of current ratings and target prices for Clearfield and Motorola Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 2 0 3.00
Motorola Solutions 0 3 9 0 2.75

Clearfield currently has a consensus target price of $15.50, indicating a potential upside of 28.63%. Motorola Solutions has a consensus target price of $102.80, indicating a potential upside of 1.48%. Given Clearfield’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Clearfield is more favorable than Motorola Solutions.

Risk and Volatility

Clearfield has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Motorola Solutions has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Summary

Clearfield beats Motorola Solutions on 9 of the 17 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.

Motorola Solutions Company Profile

Motorola Solutions, Inc. is a provider of communication infrastructure, devices, accessories, software and services. The Company operates through two segments: Products and Services. The Company’s Products segment offers a portfolio of infrastructure, devices, accessories and software. The Products segment has two product lines: Devices and Systems. The primary customers of the Products segment are government, public safety and first-responder agencies, municipalities, and commercial and industrial customers operating private communications networks and manage a mobile workforce. The Company’s Services segment provides a range of service offerings for government, public safety and commercial communication networks. The Services segment product lines include Integration services, Managed & Support services, and Integrated Digital Enhanced Network (iDEN) services.

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