Head to Head Review: Aerohive Networks (HIVE) & Clearfield (CLFD)

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

Volatility & Risk

Aerohive Networks has a beta of 1.79, indicating that its share price is 79% 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 Recommendations

This is a summary of recent recommendations and price targets for Aerohive Networks and Clearfield, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 4 0 2.80
Clearfield 0 0 2 0 3.00

Aerohive Networks presently has a consensus target price of $6.31, suggesting a potential upside of 7.13%. Clearfield has a consensus target price of $15.50, suggesting a potential upside of 25.51%. Given Clearfield’s stronger consensus rating and higher possible upside, analysts clearly believe Clearfield is more favorable than Aerohive Networks.

Insider & Institutional Ownership

46.1% of Aerohive Networks shares are held by institutional investors. Comparatively, 29.0% of Clearfield shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by insiders. Comparatively, 18.3% of Clearfield shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Aerohive Networks -17.00% -103.45% -18.90%
Clearfield 5.20% 5.95% 5.50%

Valuation & Earnings

This table compares Aerohive Networks and Clearfield’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $169.82 million 1.86 -$36.91 million ($0.50) -11.78
Clearfield $73.95 million 2.31 $3.84 million $0.28 44.11

Clearfield has lower revenue, but higher earnings than Aerohive Networks. Aerohive Networks 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 Aerohive Networks on 9 of the 14 factors compared between the two stocks.

Aerohive Networks Company Profile

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

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.

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