Drug Manufacturers - Specialty & Generic
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HCM vs CAN
Revenue, margins, valuation, and 5-year total return — side by side.
Computer Hardware
HCM vs CAN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Computer Hardware |
| Market Cap | $2.29B | $331M |
| Revenue (TTM) | $602M | $530M |
| Net Income (TTM) | $467M | $-210M |
| Gross Margin | 8.9% | 7.8% |
| Operating Margin | -3.3% | -21.0% |
| Forward P/E | 41.7x | — |
| Total Debt | $90M | $55M |
| Cash & Equiv. | $154M | $81M |
HCM vs CAN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| HUTCHMED (China) Li… (HCM) | 100 | 61.0 | -39.0% |
| Canaan Inc. (CAN) | 100 | 21.8 | -78.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HCM vs CAN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
HCM carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 0 yrs, beta 0.66
- 1.0% 10Y total return vs CAN's -90.1%
- Lower volatility, beta 0.66, Low D/E 11.6%, current ratio 2.83x
CAN is the clearest fit if your priority is growth exposure.
- Rev growth 96.7%, EPS growth 51.1%, 3Y rev CAGR -6.7%
- 96.7% revenue growth vs HCM's -24.8%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 96.7% revenue growth vs HCM's -24.8% | |
| Quality / Margins | 77.5% margin vs CAN's -39.7% | |
| Stability / Safety | Beta 0.66 vs CAN's 4.41, lower leverage | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | -8.8% vs CAN's -14.1% | |
| Efficiency (ROA) | 30.6% ROA vs CAN's -34.9%, ROIC -5.2% vs -24.9% |
HCM vs CAN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
HCM vs CAN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
HCM leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
HCM and CAN operate at a comparable scale, with $602M and $530M in trailing revenue. HCM is the more profitable business, keeping 77.5% of every revenue dollar as net income compared to CAN's -39.7%. On growth, CAN holds the edge at +121.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $602M | $530M |
| EBITDAEarnings before interest/tax | -$7M | -$66M |
| Net IncomeAfter-tax profit | $467M | -$210M |
| Free Cash FlowCash after capex | -$50M | $0 |
| Gross MarginGross profit ÷ Revenue | +8.9% | +7.8% |
| Operating MarginEBIT ÷ Revenue | -3.3% | -21.0% |
| Net MarginNet income ÷ Revenue | +77.5% | -39.7% |
| FCF MarginFCF ÷ Revenue | -8.2% | — |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.2% | +121.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +16.6% | +59.4% |
Valuation Metrics
CAN leads this category, winning 3 of 3 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $2.3B | $331M |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $305M |
| Trailing P/EPrice ÷ TTM EPS | 60.50x | -1.14x |
| Forward P/EPrice ÷ next-FY EPS est. | 41.66x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | — |
| Price / SalesMarket cap ÷ Revenue | 3.63x | 0.62x |
| Price / BookPrice ÷ Book value/share | 3.01x | 0.55x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
HCM leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
HCM delivers a 46.4% return on equity — every $100 of shareholder capital generates $46 in annual profit, vs $-48 for CAN. HCM carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAN's 0.13x. On the Piotroski fundamental quality scale (0–9), CAN scores 6/9 vs HCM's 3/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +46.4% | -48.1% |
| ROA (TTM)Return on assets | +30.6% | -34.9% |
| ROICReturn on invested capital | -5.2% | -24.9% |
| ROCEReturn on capital employed | -4.9% | -29.7% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 0.12x | 0.13x |
| Net DebtTotal debt minus cash | -$64M | -$26M |
| Cash & Equiv.Liquid assets | $154M | $81M |
| Total DebtShort + long-term debt | $90M | $55M |
| Interest CoverageEBIT ÷ Interest expense | -15.22x | -104.52x |
Total Returns (Dividends Reinvested)
HCM leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HCM five years ago would be worth $5,074 today (with dividends reinvested), compared to $770 for CAN. Over the past 12 months, HCM leads with a -8.8% total return vs CAN's -14.1%. The 3-year compound annual growth rate (CAGR) favors HCM at -5.0% vs CAN's -40.9% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -2.5% | -33.1% |
| 1-Year ReturnPast 12 months | -8.8% | -14.1% |
| 3-Year ReturnCumulative with dividends | -14.2% | -79.3% |
| 5-Year ReturnCumulative with dividends | -49.3% | -92.3% |
| 10-Year ReturnCumulative with dividends | +1.0% | -90.1% |
| CAGR (3Y)Annualised 3-year return | -5.0% | -40.9% |
Risk & Volatility
HCM leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
HCM is the less volatile stock with a 0.66 beta — it tends to amplify market swings less than CAN's 4.41 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HCM currently trades 68.3% from its 52-week high vs CAN's 23.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.66x | 4.41x |
| 52-Week HighHighest price in past year | $19.50 | $2.22 |
| 52-Week LowLowest price in past year | $12.91 | $0.39 |
| % of 52W HighCurrent price vs 52-week peak | +68.3% | +23.2% |
| RSI (14)Momentum oscillator 0–100 | 37.1 | 58.4 |
| Avg Volume (50D)Average daily shares traded | 31K | 9.7M |
Analyst Outlook
CAN leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates HCM as "Buy" and CAN as "Buy". Consensus price targets imply 336.9% upside for CAN (target: $2) vs 31.5% for HCM (target: $18).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $17.50 | $2.25 |
| # AnalystsCovering analysts | 10 | 6 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | 0.0% |
HCM leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). CAN leads in 2 (Valuation Metrics, Analyst Outlook).
HCM vs CAN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is HCM or CAN a better buy right now?
For growth investors, Canaan Inc.
(CAN) is the stronger pick with 96. 7% revenue growth year-over-year, versus -24. 8% for HUTCHMED (China) Limited (HCM). HUTCHMED (China) Limited (HCM) offers the better valuation at 60. 5x trailing P/E (41. 7x forward), making it the more compelling value choice. Analysts rate HUTCHMED (China) Limited (HCM) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — HCM or CAN?
Over the past 5 years, HUTCHMED (China) Limited (HCM) delivered a total return of -49.
3%, compared to -92. 3% for Canaan Inc. (CAN). Over 10 years, the gap is even starker: HCM returned +1. 0% versus CAN's -90. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — HCM or CAN?
By beta (market sensitivity over 5 years), HUTCHMED (China) Limited (HCM) is the lower-risk stock at 0.
66β versus Canaan Inc. 's 4. 41β — meaning CAN is approximately 566% more volatile than HCM relative to the S&P 500. On balance sheet safety, HUTCHMED (China) Limited (HCM) carries a lower debt/equity ratio of 12% versus 13% for Canaan Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — HCM or CAN?
By revenue growth (latest reported year), Canaan Inc.
(CAN) is pulling ahead at 96. 7% versus -24. 8% for HUTCHMED (China) Limited (HCM). On earnings-per-share growth, the picture is similar: Canaan Inc. grew EPS 51. 1% year-over-year, compared to -63. 3% for HUTCHMED (China) Limited. Over a 3-year CAGR, HCM leads at 21. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — HCM or CAN?
HUTCHMED (China) Limited (HCM) is the more profitable company, earning 6.
0% net margin versus -39. 7% for Canaan Inc. — meaning it keeps 6. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCM leads at -6. 9% versus -21. 2% for CAN. At the gross margin level — before operating expenses — HCM leads at 44. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is HCM or CAN more undervalued right now?
Analyst consensus price targets imply the most upside for CAN: 336.
9% to $2. 25.
07Which pays a better dividend — HCM or CAN?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is HCM or CAN better for a retirement portfolio?
For long-horizon retirement investors, HUTCHMED (China) Limited (HCM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
66)). Canaan Inc. (CAN) carries a higher beta of 4. 41 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HCM: +1. 0%, CAN: -90. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between HCM and CAN?
These companies operate in different sectors (HCM (Healthcare) and CAN (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: HCM is a small-cap quality compounder stock; CAN is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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