Triumph Financial (NASDAQ:TFIN – Get Free Report) and Canaan (NASDAQ:CAN – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Profitability
This table compares Triumph Financial and Canaan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Triumph Financial | 2.75% | 1.79% | 0.25% |
| Canaan | -77.01% | -92.49% | -50.12% |
Risk and Volatility
Triumph Financial has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Canaan has a beta of 3.49, indicating that its stock price is 249% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Triumph Financial | $419.01 million | 2.66 | $16.09 million | $0.44 | 106.79 |
| Canaan | $269.32 million | 1.50 | -$249.75 million | ($0.90) | -1.21 |
Triumph Financial has higher revenue and earnings than Canaan. Canaan is trading at a lower price-to-earnings ratio than Triumph Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.1% of Triumph Financial shares are owned by institutional investors. Comparatively, 70.1% of Canaan shares are owned by institutional investors. 5.6% of Triumph Financial shares are owned by company insiders. Comparatively, 0.3% of Canaan shares 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.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Triumph Financial and Canaan, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Triumph Financial | 0 | 4 | 0 | 0 | 2.00 |
| Canaan | 1 | 3 | 5 | 0 | 2.44 |
Triumph Financial currently has a consensus target price of $70.75, suggesting a potential upside of 50.57%. Canaan has a consensus target price of $2.54, suggesting a potential upside of 134.25%. Given Canaan’s stronger consensus rating and higher possible upside, analysts plainly believe Canaan is more favorable than Triumph Financial.
Summary
Triumph Financial beats Canaan on 10 of the 14 factors compared between the two stocks.
About Triumph Financial
Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.
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.
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