Canaan (NASDAQ:CAN – Get Free Report) and Ponce Financial Group (NASDAQ:PDLB – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Canaan and Ponce Financial Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canaan | 1 | 2 | 6 | 0 | 2.56 |
| Ponce Financial Group | 0 | 1 | 1 | 1 | 3.00 |
Canaan presently has a consensus price target of $2.01, suggesting a potential upside of 360.63%. Ponce Financial Group has a consensus price target of $24.00, suggesting a potential upside of 29.52%. Given Canaan’s higher possible upside, research analysts plainly believe Canaan is more favorable than Ponce Financial Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canaan | $529.74 million | 0.59 | -$210.27 million | ($0.34) | -1.28 |
| Ponce Financial Group | $194.94 million | 2.30 | $28.70 million | $1.30 | 14.25 |
Ponce Financial Group has lower revenue, but higher earnings than Canaan. Canaan is trading at a lower price-to-earnings ratio than Ponce Financial Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Canaan and Ponce Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canaan | -41.71% | -55.90% | -34.19% |
| Ponce Financial Group | 15.74% | 10.09% | 0.98% |
Volatility and Risk
Canaan has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500. Comparatively, Ponce Financial Group has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Institutional & Insider Ownership
70.1% of Canaan shares are held by institutional investors. Comparatively, 64.4% of Ponce Financial Group shares are held by institutional investors. 0.3% of Canaan shares are held by insiders. Comparatively, 7.2% of Ponce Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Ponce Financial Group beats Canaan on 10 of the 15 factors compared between the two stocks.
About Canaan
Canaan Inc. engages in the research, design, and sale of integrated circuit (IC) final mining equipment products by integrating IC products for bitcoin mining and related components in the People's Republic of China. It is also involved in the assembly and distribution of mining equipment and spare parts. The company has operations in the United States, Australia, Kazakhstan, Hong Kong, Canada, Mainland China, Thailand, Sweden, and internationally. Canaan Inc. was founded in 2013 and is based in Singapore.
About Ponce Financial Group
Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.
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