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

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

Valuation and Earnings

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

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

Clearfield has higher revenue and earnings than Microwave Filter.

Risk and Volatility

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

Insider & Institutional Ownership

88.7% of Clearfield shares are owned by institutional investors. 6.9% of Microwave Filter shares are owned by insiders. Comparatively, 16.0% of Clearfield shares are owned by 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.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings for Microwave Filter and Clearfield, as reported by MarketBeat.

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

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

Summary

Clearfield beats Microwave Filter on 6 of the 9 factors compared between the two stocks.

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.

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.