Contrasting Canaan (CAN) & Its Rivals

Canaan (NASDAQ:CAN) is one of 82 publicly-traded companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it contrast to its rivals? We will compare Canaan to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and price targets for Canaan and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canaan	2	0	5	1	2.62
Canaan Competitors	1106	4388	7790	377	2.54

Canaan presently has a consensus target price of $1.75, suggesting a potential upside of 797.44%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 55.95%. Given Canaan’s stronger consensus rating and higher probable upside, analysts plainly believe Canaan is more favorable than its rivals.

Valuation & Earnings

This table compares Canaan and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canaan	$441.31 million	-$210.27 million	-0.44
Canaan Competitors	$25.99 billion	$3.72 billion	6.37

Canaan’s rivals have higher revenue and earnings than Canaan. Canaan is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

70.1% of Canaan shares are owned by institutional investors. Comparatively, 51.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 0.3% of Canaan shares are owned by insiders. Comparatively, 10.9% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Canaan and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canaan	-67.78%	-77.73%	-51.51%
Canaan Competitors	-113.38%	-32.05%	6.32%

Risk & Volatility

Canaan has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500. Comparatively, Canaan’s rivals have a beta of 1.68, indicating that their average share price is 68% more volatile than the S&P 500.

Summary

Canaan beats its rivals on 7 of the 13 factors compared.

Canaan Company Profile

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.