Comparing Clearfield (CLFD) and Ooma (OOMA)

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

Volatility & Risk

Clearfield has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Ooma has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Clearfield 5.20% 5.94% 5.49%
Ooma -11.48% -30.96% -16.79%

Institutional & Insider Ownership

28.3% of Clearfield shares are held by institutional investors. Comparatively, 74.7% of Ooma shares are held by institutional investors. 18.3% of Clearfield shares are held by company insiders. Comparatively, 11.4% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Clearfield and Ooma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearfield 0 0 2 0 3.00
Ooma 1 2 2 0 2.20

Clearfield presently has a consensus target price of $15.50, suggesting a potential upside of 24.50%. Ooma has a consensus target price of $11.92, suggesting a potential upside of 30.24%. Given Ooma’s higher probable upside, analysts clearly believe Ooma is more favorable than Clearfield.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Clearfield $73.95 million 2.35 $3.85 million $0.28 44.46
Ooma $104.52 million 1.60 -$12.94 million ($0.71) -12.89

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

Summary

Clearfield beats Ooma on 8 of the 12 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.

Ooma Company Profile

Ooma, Inc. is a United States-based company, which offers Ooma, a communications platform for small businesses and consumers. Ooma serves as a communications hub, which offers cloud-based telephony, Internet security, home monitoring and other connected services. Ooma combines PureVoice high definition (HD) call quality features with mobile applications anytime, anywhere calling. Ooma is a full router capable of prioritizing voice data and directing traffic to ensure reliable phone service. Its enterprise-grade phone service built for small business includes features, such as calling features, including unlimited calling in United States and Canada, 911 service and toll-free numbers available; office features, including virtual receptionist, extension dialing and voicemail; mobility features, including call forwarding, voicemail forwarding and multi-ring, and one-touch Internet protocol (IP) phone features, including three way conference, transfer calls and call on hold.

Receive News & Ratings for Clearfield Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Clearfield Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply