Gilat Satellite Networks (NASDAQ: GILT) and Clearfield (NASDAQ:CLFD) 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 valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Volatility & Risk
Gilat Satellite Networks has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Clearfield has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
This table compares Gilat Satellite Networks and Clearfield’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gilat Satellite Networks||$279.55 million||1.62||-$5.34 million||$0.15||55.07|
|Clearfield||$73.95 million||2.31||$3.84 million||$0.28||44.11|
Clearfield has lower revenue, but higher earnings than Gilat Satellite Networks. Clearfield is trading at a lower price-to-earnings ratio than Gilat Satellite Networks, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Gilat Satellite Networks and Clearfield, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gilat Satellite Networks||0||0||0||0||N/A|
Clearfield has a consensus target price of $15.50, suggesting a potential upside of 25.51%. Given Clearfield’s higher probable upside, analysts clearly believe Clearfield is more favorable than Gilat Satellite Networks.
Insider and Institutional Ownership
7.9% of Gilat Satellite Networks shares are owned by institutional investors. Comparatively, 29.0% of Clearfield shares are owned by institutional investors. 1.1% of Gilat Satellite Networks shares are owned by insiders. Comparatively, 18.5% of Clearfield shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Gilat Satellite Networks and Clearfield’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gilat Satellite Networks||2.83%||7.58%||4.20%|
Clearfield beats Gilat Satellite Networks on 10 of the 13 factors compared between the two stocks.
About Gilat Satellite Networks
Gilat Satellite Networks Ltd. is a provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-Move/on-the-Pause terminals and modems. The Company’s equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations and enterprises.
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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