Financial Survey: Plantronics (PLT) versus Clearfield (CLFD)

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

Earnings & Valuation

This table compares Plantronics and Clearfield’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Plantronics $881.18 million 1.92 $82.59 million $2.43 21.07
Clearfield $73.95 million 2.55 $3.84 million $0.28 48.75

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

Risk & Volatility

Plantronics has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Clearfield has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Plantronics and Clearfield, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plantronics 0 1 2 0 2.67
Clearfield 0 0 2 0 3.00

Plantronics currently has a consensus target price of $57.33, indicating a potential upside of 11.96%. Clearfield has a consensus target price of $15.50, indicating a potential upside of 13.55%. Given Clearfield’s stronger consensus rating and higher probable upside, analysts clearly believe Clearfield is more favorable than Plantronics.

Institutional and Insider Ownership

90.3% of Plantronics shares are owned by institutional investors. Comparatively, 28.7% of Clearfield shares are owned by institutional investors. 3.2% of Plantronics shares are owned by company insiders. Comparatively, 18.3% of Clearfield shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Plantronics 9.41% 20.12% 7.54%
Clearfield 5.20% 5.95% 5.50%

Dividends

Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Clearfield does not pay a dividend. Plantronics pays out 24.7% of its earnings in the form of a dividend.

Summary

Plantronics beats Clearfield on 8 of the 15 factors compared between the two stocks.

About Plantronics

Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.

About Clearfield

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.

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