Clearfield, Inc. (CLFD) vs Frequency Electronics, Inc. (FEIM)

Clearfield, Inc. and Frequency Electronics, Inc. are both Communication Equipment companies. Frequency Electronics, Inc. is the larger, with a market value of $842.3M against $450.2M — 1.9× the size. Clearfield, Inc. has negative trailing earnings, so its P/E is not meaningful; Frequency Electronics, Inc. trades at 300×. Clearfield, Inc. grew revenue faster over the last twelve months: 34.0% against 6.30%. Frequency Electronics, Inc. has the higher net margin (3.68% vs −4.70%) and the higher return on invested capital (1.96% vs −0.16%). Across the 18 metrics below, Clearfield, Inc. leads on 11 and Frequency Electronics, Inc. on 7.

Valuation

Metric CLFD FEIM Communication Equipment median
P/E n/m 300.36 35.34
P/S 3.01 10.54 2.31
P/B 1.88 6.41 2.32
Price to free cash flow 57.14 n/m 27.50
EV/EBITDA 70.73 390.15 14.17
EV/Sales 2.38 9.83 2.42
Earnings yield (1.50%) 0.33% (0.46%)
Free cash flow yield 1.75% (0.02%) 1.06%

Profitability

Metric CLFD FEIM Communication Equipment median
Gross margin 33.01% 33.03% 39.47%
Operating margin (0.24%) 2.52% 2.39%
Net margin (4.70%) 3.68% (0.80%)
Free cash flow margin 5.37% (0.25%) 1.39%
Return on equity (2.83%) 3.04% (1.91%)
Return on assets (2.48%) 2.17% (0.20%)
Return on invested capital (0.16%) 1.96% 0.72%

Growth

Metric CLFD FEIM Communication Equipment median
Revenue growth (TTM) 33.95% 6.30% 11.48%
EPS growth (last fiscal year) 31.76% (103.63%) 27.59%
Revenue growth, 5-year CAGR 10.03% 3.11% 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CLFD FEIM Communication Equipment median
Debt to equity 0.00 0.00 0.06
Current ratio 12.53 5.34 2.01
Net debt to EBITDA (16.40) (0.92) 0.67

Dividend

Metric CLFD FEIM Communication Equipment median
Dividend yield — 0.00% 0.94%
Payout ratio — 0.00 0.34

Size

Metric CLFD FEIM Communication Equipment median
Market cap 450.17m 842.34m 610.30m

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