Reviewing Canaan (NASDAQ:CAN) & Logitech International (NASDAQ:LOGI)

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

Analyst Ratings

This is a summary of current recommendations for Logitech International and Canaan, as provided by MarketBeat.

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

Logitech International currently has a consensus target price of $105.29, suggesting a potential upside of 6.73%. Canaan has a consensus target price of $2.01, suggesting a potential upside of 381.61%. Given Canaan’s stronger consensus rating and higher possible upside, analysts plainly believe Canaan is more favorable than Logitech International.

Insider and Institutional Ownership

45.8% of Logitech International shares are owned by institutional investors. Comparatively, 70.1% of Canaan shares are owned by institutional investors. 0.2% of Logitech International shares are owned by company insiders. Comparatively, 0.3% of Canaan shares are owned by company 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.

Risk and Volatility

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

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Logitech International	$4.84 billion	2.99	$711.19 million	$5.45	18.10
Canaan	$529.73 million	0.56	-$210.27 million	($0.34)	-1.23

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.

Summary

Logitech International beats Canaan on 8 of the 14 factors compared between the two stocks.

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.

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.