Comparing Clearfield (NASDAQ:CLFD) and ERF Wireless (OTCMKTS:ERFB)

Clearfield (NASDAQ:CLFD) and ERF Wireless (OTCMKTS:ERFB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

This table compares Clearfield and ERF Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearfield	-5.26%	-3.06%	-2.70%
ERF Wireless	N/A	N/A	N/A

Insider & Institutional Ownership

88.7% of Clearfield shares are owned by institutional investors. Comparatively, 0.1% of ERF Wireless shares are owned by institutional investors. 16.0% of Clearfield shares are owned by company insiders. Comparatively, 5.8% of ERF Wireless shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Clearfield and ERF Wireless”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearfield	$169.62 million	3.02	$32.53 million	($0.25)	-144.00
ERF Wireless	N/A	N/A	N/A	($1.83)	N/A

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

Analyst Ratings

This is a summary of current recommendations for Clearfield and ERF Wireless, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearfield	0	0	4	0	3.00
ERF Wireless	0	0	0	0	N/A

Clearfield presently has a consensus target price of $46.75, suggesting a potential upside of 29.86%.

Summary

Clearfield beats ERF Wireless on 5 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 ERF Wireless

ERF Wireless, Inc. provides wireless broadband access solutions for the energy industry in North America. The company conducts its operations through Energy Broadband, Inc., Wireless Bundled Services Division, and Enterprise Network Services segments. It offers wireless bandwidth and related support services, including nomadic terrestrial wireless broadband circuit connectivity to the wellsite; wellsite communications equipment rental; wellsite IT support services; wellsite IT services over broadband; network monitoring and maintenance:; layer 2 secure communications connectivity products rental and services; fixed site terrestrial wireless broadband connectivity; network design and construction; production field supervisory control and data acquisition; and midstream communications, monitoring, and security solutions for the oil and gas industry. The company also provides enterprise-level wireless bandwidth product and services, such as design and implementation of custom Internet wireless bandwidth solutions, including long-term maintenance and network monitoring; reselling arrangements; and secure connectivity services through its CryptoVue product to the regional banking, healthcare, and educational sectors primarily in the rural areas of North America. In addition, it offers commercial and residential wireless bandwidth products and services comprising -speed Internet, voice over Internet protocol services, network monitoring and maintenance services, and video services to commercial businesses and residential customers. The company was founded in 1986 and is headquartered in League City, Texas.