Canaan (NASDAQ:CAN) versus TranSwitch (OTCMKTS:TXCCQ) Head to Head Analysis

Canaan (NASDAQ:CAN) and TranSwitch (OTCMKTS:TXCCQ) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Canaan and TranSwitch, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canaan	0	0	2	0	3.00
TranSwitch	0	0	0	0	N/A

Canaan currently has a consensus target price of $4.25, suggesting a potential upside of 300.94%.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canaan	-192.95%	-75.57%	-57.68%
TranSwitch	N/A	N/A	N/A

Volatility and Risk

Canaan has a beta of 3.09, indicating that its share price is 209% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of 14.7, indicating that its share price is 1,370% more volatile than the S&P 500.

Earnings & Valuation

This table compares Canaan and TranSwitch’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canaan	$191.34 million	1.55	-$414.15 million	($2.05)	-0.52
TranSwitch	N/A	N/A	N/A	N/A	N/A

TranSwitch has lower revenue, but higher earnings than Canaan.

Institutional & Insider Ownership

70.1% of Canaan shares are owned by institutional investors. 0.3% of Canaan shares are owned by company insiders. Comparatively, 6.3% of TranSwitch shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

TranSwitch beats Canaan on 5 of the 8 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 TranSwitch

TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.