Corsair Gaming (NASDAQ:CRSR) vs. Canaan (NASDAQ:CAN) Head to Head Survey

Corsair Gaming (NASDAQ:CRSR) and Canaan (NASDAQ:CAN) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Insider & Institutional Ownership

25.7% of Corsair Gaming shares are held by institutional investors. Comparatively, 70.1% of Canaan shares are held by institutional investors. 54.5% of Corsair Gaming shares are held by insiders. Comparatively, 0.3% of Canaan shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Corsair Gaming and Canaan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corsair Gaming	$1.45 billion	0.81	-$12.47 million	$0.30	36.36
Canaan	$509.65 million	0.52	-$210.27 million	($0.34)	-1.08

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

Profitability

This table compares Corsair Gaming and Canaan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corsair Gaming	2.36%	13.10%	6.88%
Canaan	-41.71%	-55.84%	-35.47%

Analyst Recommendations

This is a summary of current recommendations for Corsair Gaming and Canaan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corsair Gaming	1	3	4	1	2.56
Canaan	1	0	6	0	2.71

Corsair Gaming presently has a consensus price target of $12.00, indicating a potential upside of 10.00%. Canaan has a consensus price target of $2.01, indicating a potential upside of 445.74%. Given Canaan’s stronger consensus rating and higher possible upside, analysts clearly believe Canaan is more favorable than Corsair Gaming.

Volatility and Risk

Corsair Gaming has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Canaan has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Summary

Corsair Gaming beats Canaan on 10 of the 15 factors compared between the two stocks.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.

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.