Comparing Clearfield (NASDAQ:CLFD) & Microwave Filter (OTCMKTS:MFCO)

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

Insider & Institutional Ownership

88.7% of Clearfield shares are owned by institutional investors. 16.0% of Clearfield shares are owned by company insiders. Comparatively, 6.9% of Microwave Filter shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Clearfield and Microwave Filter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearfield	0	0	4	0	3.00
Microwave Filter	0	0	0	0	N/A

Clearfield presently has a consensus target price of $46.75, suggesting a potential upside of 28.33%. Given Clearfield’s higher possible upside, research analysts clearly believe Clearfield is more favorable than Microwave Filter.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearfield	$169.62 million	3.06	$32.53 million	($0.25)	-145.72
Microwave Filter	N/A	N/A	N/A	N/A	N/A

Clearfield has higher revenue and earnings than Microwave Filter.

Volatility & Risk

Clearfield has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Microwave Filter has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clearfield	-5.26%	-3.06%	-2.70%
Microwave Filter	N/A	N/A	N/A

Summary

Clearfield beats Microwave Filter on 6 of the 9 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 Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.