Comparing Canon (OTCMKTS:CAJPY) & Dell Technologies (NYSE:DELL)

Dell Technologies (NYSE:DELL) and Canon (OTCMKTS:CAJPY) are both large-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Dell Technologies and Canon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dell Technologies	1	10	20	1	2.66
Canon	0	1	0	0	2.00

Dell Technologies currently has a consensus price target of $494.67, indicating a potential upside of 21.92%. Given Dell Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Dell Technologies is more favorable than Canon.

Institutional & Insider Ownership

76.4% of Dell Technologies shares are owned by institutional investors. 41.5% of Dell Technologies shares are owned by insiders. Comparatively, 0.0% of Canon shares are owned by 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

Dell Technologies has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Canon has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dell Technologies and Canon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dell Technologies	$113.54 billion	2.32	$5.94 billion	$12.59	32.23
Canon	$29.46 billion	0.83	$2.22 billion	$2.54	10.97

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

Dividends

Dell Technologies pays an annual dividend of $2.52 per share and has a dividend yield of 0.6%. Canon pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Dell Technologies pays out 20.0% of its earnings in the form of a dividend. Canon pays out 39.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dell Technologies has increased its dividend for 3 consecutive years.

Profitability

This table compares Dell Technologies and Canon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dell Technologies	6.28%	-366.90%	8.65%
Canon	7.36%	9.33%	5.51%

Summary

Dell Technologies beats Canon on 15 of the 18 factors compared between the two stocks.

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

About Canon

Canon Inc., together with its subsidiaries, manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates through four segments: Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. The Printing Business Unit segment offers office MFDs, document solutions, laser multifunction printers, laser printers, inkjet printers, image scanners, calculators, digital continuous feed presses, digital sheet-fed presses, and large format printers. The Imaging Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras, interchangeable lenses, compact photo printers, network cameras, video management and video content analytics software, digital camcorders, digital cinema cameras, broadcast equipment, and multimedia projectors. The Medical System Business Unit segment offers computed tomography systems, diagnostic ultrasound systems, diagnostic X-ray systems, magnetic resonance imaging systems, clinical chemistry analyzers, digital radiography systems, and ophthalmic equipment. The Industry and Others Business Unit segment provides semiconductor lithography equipment, flat panel display lithography equipment, vacuum thin-film deposition equipment, organic light-emitting diode display manufacturing equipment, die bonders, handy terminals, and document scanners. The company also provides maintenance services; and supplies replacement drums, parts, toners, and papers. It sells its products under the Canon brand through subsidiaries or independent distributors to dealers and retail outlets, as well as directly to end-users globally. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.