Critical Review: Logitech International (NASDAQ:LOGI) and Canon (OTCMKTS:CAJPY)

Logitech International (NASDAQ:LOGI – Get Free Report) and Canon (OTCMKTS:CAJPY – Get Free Report) are both large-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Logitech International 16.36% 37.09% 21.14%
Canon 7.54% 9.52% 5.65%

Analyst Ratings

This is a summary of current recommendations and price targets for Logitech International and Canon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Logitech International 2 6 2 0 2.00
Canon 0 1 0 0 2.00

Logitech International presently has a consensus target price of $106.29, suggesting a potential upside of 11.26%. Given Logitech International’s higher probable upside, analysts plainly believe Logitech International is more favorable than Canon.

Earnings & Valuation

This table compares Logitech International and Canon”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Logitech International $4.84 billion 2.89 $711.19 million $5.55 17.21
Canon $29.46 billion 0.89 $2.22 billion $2.62 11.41

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

Institutional & Insider Ownership

45.8% of Logitech International shares are owned by institutional investors. 0.2% of Logitech International shares are owned by insiders. Comparatively, 0.0% of Canon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Logitech International has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Canon has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Summary

Logitech International beats Canon on 11 of the 13 factors compared between the two stocks.

About Logitech International

(Get Free Report)

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 Canon

(Get Free Report)

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.

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