GoPro (NASDAQ: GPRO) and Canon (NYSE:CAJ) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for GoPro and Canon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GoPro 3 9 0 0 1.75
Canon 0 0 0 0 N/A

GoPro presently has a consensus price target of $7.55, suggesting a potential upside of 48.92%. Given GoPro’s higher possible upside, equities analysts plainly believe GoPro is more favorable than Canon.

Dividends

Canon pays an annual dividend of $1.27 per share and has a dividend yield of 3.5%. GoPro does not pay a dividend. Canon pays out 59.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares GoPro 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
GoPro $1.18 billion 0.63 -$182.87 million ($1.06) -4.78
Canon $36.15 billion 1.09 $2.15 billion $2.15 16.76

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

Profitability

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

Net Margins Return on Equity Return on Assets
GoPro -15.50% -40.56% -17.17%
Canon 5.93% 8.75% 5.08%

Volatility and Risk

GoPro has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Canon has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

26.0% of GoPro shares are held by institutional investors. Comparatively, 1.3% of Canon shares are held by institutional investors. 28.6% of GoPro shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Canon beats GoPro on 9 of the 13 factors compared between the two stocks.

GoPro Company Profile

GoPro, Inc. develops and sells cameras, and mountable and wearable accessories in the United States and internationally. The company offers HERO5 and HERO6, which are cloud-connected line of cameras; Fusion, a waterproof spherical camera; GoPro Plus, a cloud-based storage solution that enables subscribers to access, edit, and share content; Quik, a mobile editing app, as well as desktop app for editing options for power users; GoPro App, a mobile app that allows users to preview and play back photos and videos, control GoPro cameras, and share content; and Karma Grip, a handheld or body-mountable camera stabilizer that capture zero-shake smooth video. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, chest harnesses, and head straps. GoPro, Inc. markets and sells its products through retailers and wholesale distributors, as well as through its Website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2004 and is headquartered in San Mateo, California.

Canon Company Profile

Canon Inc. manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates in four segments: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit. The Office Business Unit segment offers office MFDs, printers, copying machines for personal and office use, production print products for print professionals, laser multifunction and laser printers, digital production printing systems, continuous feed and wide-format printers, and document solutions, as well as software, services, and solutions. The Imaging System Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras and camcorders, digital cinema cameras, interchangeable lenses, compact photo printers, inkjet printers, commercial photo printers, image scanners, multimedia projectors, broadcast equipment, and calculators. The Medical System Business Unit segment offers digital radiography systems, diagnostic X-ray systems, computed tomography, magnetic resonance imaging, diagnostic ultrasound systems, clinical chemistry analyzers, and ophthalmic equipment. The Industry and Others Business Unit segment provides semiconductor lithography equipment, flat panel display lithography equipment, digital radiography systems, vacuum thin-film deposition equipment, organic light-emitting diode panel manufacturing equipment, die bonders, micromotors, network cameras, 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 in Japan, the Americas, Europe, rest of Asia, and Oceania. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.

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