TDK (OTCMKTS:TTDKY) and Canaan (NASDAQ:CAN) Critical Survey

Canaan (NASDAQ:CAN) and TDK (OTCMKTS:TTDKY) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canaan	-67.78%	-77.73%	-51.51%
TDK	7.87%	9.15%	4.48%

Analyst Ratings

This is a breakdown of recent ratings for Canaan and TDK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canaan	2	0	5	1	2.62
TDK	0	0	0	2	4.00

Canaan presently has a consensus price target of $1.75, suggesting a potential upside of 727.42%. Given Canaan’s higher possible upside, research analysts clearly believe Canaan is more favorable than TDK.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canaan	$529.73 million	0.29	-$210.27 million	($0.44)	-0.48
TDK	$16.64 billion	1.95	$1.29 billion	$0.68	24.49

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

Insider & Institutional Ownership

70.1% of Canaan shares are held by institutional investors. 0.3% of Canaan shares are held by company insiders. Comparatively, 0.0% of TDK shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Canaan has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500. Comparatively, TDK has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Summary

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

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.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.