Extreme Networks (NASDAQ:EXTR – Get Free Report) and Clearfield (NASDAQ:CLFD – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
91.0% of Extreme Networks shares are held by institutional investors. Comparatively, 88.7% of Clearfield shares are held by institutional investors. 3.6% of Extreme Networks shares are held by company insiders. Comparatively, 17.8% of Clearfield shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings for Extreme Networks and Clearfield, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Extreme Networks | 0 | 2 | 7 | 0 | 2.78 |
| Clearfield | 1 | 1 | 5 | 0 | 2.57 |
Valuation and Earnings
This table compares Extreme Networks and Clearfield”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Extreme Networks | $1.28 billion | 2.26 | $42.12 million | $0.31 | 71.61 |
| Clearfield | $150.13 million | 2.72 | -$8.05 million | ($0.51) | -58.86 |
Extreme Networks has higher revenue and earnings than Clearfield. Clearfield is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Extreme Networks and Clearfield’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Extreme Networks | 3.28% | 88.88% | 6.32% |
| Clearfield | -4.71% | 1.61% | 1.45% |
Risk and Volatility
Extreme Networks has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Clearfield has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.
Summary
Extreme Networks beats Clearfield on 11 of the 14 factors compared between the two stocks.
About Extreme Networks
Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.
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.
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