Canaan (CAN) versus The Competition Financial Review

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

Earnings & Valuation

This table compares Canaan and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canaan	$529.73 million	-$210.27 million	-0.42
Canaan Competitors	$24.66 billion	$3.64 billion	4.17

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.

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	-113.13%	-29.78%	7.23%

Insider and Institutional Ownership

70.1% of Canaan shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 0.3% of Canaan shares are owned by company insiders. Comparatively, 11.0% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Canaan has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Canaan’s rivals have a beta of 1.80, suggesting that their average stock price is 80% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings 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	1115	4395	7811	380	2.54

Canaan presently has a consensus price target of $1.75, indicating a potential upside of 841.37%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 80.13%. Given Canaan’s stronger consensus rating and higher possible upside, research analysts clearly believe Canaan is more favorable than its rivals.

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.