Comparing Logitech International (NASDAQ:LOGI) and Canaan (NASDAQ:CAN)

Canaan (NASDAQ:CAN) and Logitech International (NASDAQ:LOGI) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Canaan and Logitech International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canaan	-41.71%	-55.84%	-35.47%
Logitech International	16.28%	37.30%	21.36%

Institutional & Insider Ownership

70.1% of Canaan shares are owned by institutional investors. Comparatively, 45.8% of Logitech International shares are owned by institutional investors. 0.3% of Canaan shares are owned by insiders. Comparatively, 0.2% of Logitech International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Canaan and Logitech International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canaan	1	0	6	0	2.71
Logitech International	2	5	3	0	2.10

Canaan currently has a consensus target price of $2.01, indicating a potential upside of 465.73%. Logitech International has a consensus target price of $105.29, indicating a potential upside of 9.64%. Given Canaan’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Canaan is more favorable than Logitech International.

Earnings & Valuation

This table compares Canaan and Logitech International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canaan	$529.73 million	0.48	-$210.27 million	($0.34)	-1.04
Logitech International	$4.84 billion	2.91	$711.19 million	$5.45	17.62

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

Risk and Volatility

Canaan has a beta of 2.62, meaning that its share price is 162% more volatile than the S&P 500. Comparatively, Logitech International has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Summary

Logitech International beats Canaan on 8 of the 14 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 Logitech International

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets software-enabled hardware solutions that connect people to working, creating, gaming, and streaming worldwide. The company offers products for gamers and streamers, including mice, racing wheels, headsets, keyboards, microphones, and streaming services; corded and cordless keyboards and keyboard-and-mouse combinations; pointing devices, such as wireless mice and wireless mouse products; conference room cameras, such as ConferenceCams; controllers for video conferencing room solutions; PC-based webcams, including streaming cameras and VC webcams; tablet accessories that includes keyboards for tablets; PC and VC headsets, in-ear headphones, and premium wireless earbuds; and mobile speakers and PC speakers, as well as portable wireless Bluetooth speakers. It sells its products to a network of distributors, retailers, and e-tailers who resell to retailers, value-added resellers, systems integrators, and other distributors. The company sells its products under the Logitech, Logitech G, and others. Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.