Seagate Technology (NASDAQ:STX – Get Free Report) and Canaan (NASDAQ:CAN – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Seagate Technology has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500. Comparatively, Canaan has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500.
Institutional and Insider Ownership
92.9% of Seagate Technology shares are owned by institutional investors. Comparatively, 70.1% of Canaan shares are owned by institutional investors. 0.5% of Seagate Technology shares are owned by insiders. Comparatively, 0.3% of Canaan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings for Seagate Technology and Canaan, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seagate Technology | 0 | 5 | 22 | 0 | 2.81 |
| Canaan | 2 | 0 | 5 | 1 | 2.62 |
Seagate Technology currently has a consensus price target of $973.40, indicating a potential upside of 47.52%. Canaan has a consensus price target of $1.75, indicating a potential upside of 654.31%. Given Canaan’s higher probable upside, analysts clearly believe Canaan is more favorable than Seagate Technology.
Profitability
This table compares Seagate Technology and Canaan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seagate Technology | 26.11% | 369.98% | 37.58% |
| Canaan | -67.78% | -77.73% | -51.51% |
Earnings and Valuation
This table compares Seagate Technology and Canaan”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seagate Technology | $12.20 billion | 12.30 | $3.18 billion | $13.88 | 47.54 |
| Canaan | $529.73 million | 0.31 | -$210.27 million | ($0.44) | -0.53 |
Seagate Technology has higher revenue and earnings than Canaan. Canaan is trading at a lower price-to-earnings ratio than Seagate Technology, indicating that it is currently the more affordable of the two stocks.
Summary
Seagate Technology beats Canaan on 12 of the 15 factors compared between the two stocks.
About Seagate Technology
Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.
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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