Analyzing Clearfield (NASDAQ:CLFD) & Ciena (NYSE:CIEN)
by Kim Johansen · The Markets DailyClearfield (NASDAQ:CLFD – Get Free Report) and Ciena (NYSE:CIEN – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Clearfield and Ciena’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clearfield | -4.71% | 1.61% | 1.45% |
| Ciena | 10.87% | 25.33% | 11.27% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Clearfield and Ciena, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clearfield | 1 | 1 | 5 | 0 | 2.57 |
| Ciena | 0 | 6 | 15 | 1 | 2.77 |
Clearfield presently has a consensus price target of $41.75, suggesting a potential upside of 38.29%. Ciena has a consensus price target of $485.93, suggesting a potential upside of 78.26%. Given Ciena’s stronger consensus rating and higher probable upside, analysts clearly believe Ciena is more favorable than Clearfield.
Earnings & Valuation
This table compares Clearfield and Ciena”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clearfield | $150.13 million | 2.73 | -$8.05 million | ($0.51) | -59.20 |
| Ciena | $4.77 billion | 8.10 | $123.34 million | $4.48 | 60.85 |
Ciena has higher revenue and earnings than Clearfield. Clearfield is trading at a lower price-to-earnings ratio than Ciena, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
88.7% of Clearfield shares are owned by institutional investors. Comparatively, 92.0% of Ciena shares are owned by institutional investors. 17.8% of Clearfield shares are owned by company insiders. Comparatively, 0.6% of Ciena shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Clearfield has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, Ciena has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
Summary
Ciena beats Clearfield on 12 of the 15 factors compared between the two stocks.
About Clearfield
Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures and sells fiber optic connectivity products used to deploy, manage and protect broadband networks. Its portfolio includes fiber distribution cabinets, panels, terminals, enclosures, splice solutions and other components that support fiber installation from the central office or data center through the outside plant and to end users. The company markets its products under brands including FieldSmart and WaveSmart. Clearfield’s solutions are designed for communications service providers, community broadband operators, utilities, municipalities, government organizations and other network owners building fiber-to-the-home, fiber-to-the-premises and related broadband infrastructure.
About Ciena
Ciena is a communications networking company that develops equipment, software and services used to build and manage telecommunications networks. Its offerings support the movement of data across fiber-optic, subsea and other network infrastructure. The company’s products include optical transport systems, routing and switching equipment, and software for network automation and management. Ciena also provides consulting, implementation and support services to help customers plan, deploy and operate their networks.