Service providers need scalable fiber optic products in order to deliver high connectivity networks to customers. Clearfield, Inc. (Nasdaq:CLFD) manufactures fiber optic connectivity and management products to provide reliable network connections while simultaneously reducing costs. Their patented modular fiber connection platform lowers the cost of broadband deployment and enables scalability. With this technology, they can lower labor costs, which account for about 70% of the fee for fiber installation.
Comps: Belden Inc. (NYSE:BDC), Infinera Corporation (Nasdaq:INFN)
While their range of products and services may vary, all three enterprises operate in the networking equipment and services field. In relation to these two, Clearfield has a significantly lower debt-to-equity ratio and higher profit margins, return on equity, and revenue growth. On top of that, outperformed Infinera in terms of earnings statistics: lower price to earnings and much higher earnings per share.