Clearfield (CLFD) and Sierra Wireless (SWIR) Head-To-Head Comparison

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Clearfield and Sierra Wireless, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 2 0 3.00
Sierra Wireless 0 9 3 0 2.25

Clearfield currently has a consensus price target of $15.50, suggesting a potential upside of 14.39%. Sierra Wireless has a consensus price target of $26.30, suggesting a potential upside of 21.48%. Given Sierra Wireless’ higher probable upside, analysts clearly believe Sierra Wireless is more favorable than Clearfield.

Profitability

This table compares Clearfield and Sierra Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearfield 5.20% 5.95% 5.50%
Sierra Wireless 3.48% 9.32% 6.03%

Valuation and Earnings

This table compares Clearfield and Sierra Wireless’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clearfield $73.95 million 2.53 $3.84 million $0.28 48.39
Sierra Wireless $615.61 million 1.13 $15.38 million $0.72 30.07

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

Institutional and Insider Ownership

29.1% of Clearfield shares are held by institutional investors. Comparatively, 23.3% of Sierra Wireless shares are held by institutional investors. 18.3% of Clearfield shares are held by insiders. Comparatively, 2.0% of Sierra Wireless shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Clearfield has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Sierra Wireless has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500.

Summary

Sierra Wireless beats Clearfield on 8 of the 14 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.

Sierra Wireless Company Profile

Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.

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