WallStSmart

Canaan Inc (CAN)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Western Digital Corporation generates 2211% more annual revenue ($11.78B vs $509.65M). WDC leads profitability with a 55.3% profit margin vs -41.7%. WDC earns a higher WallStSmart Score of 80/100 (A-).

CAN

Avoid

30

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.7Quality: 7.5
Piotroski: 5/9Altman Z: 1.00

WDC

Exceptional Buy

80

out of 100

Grade: A-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CANUndervalued (+89.9%)

Margin of Safety

+89.9%

Fair Value

$5.52

Current Price

$0.36

$5.16 discount

UndervaluedFair: $5.52Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAN2 strengths · Avg: 9.5/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

WDC6 strengths · Avg: 10.0/10
Market CapQuality
$204.78B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
67.0%10/10

Every $100 of equity generates 67 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
482.9%10/10

Earnings expanding 482.9% YoY

Areas to Watch

CAN4 concerns · Avg: 2.3/10
Market CapQuality
$290.00M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-55.7%2/10

ROE of -55.7% — below average capital efficiency

Revenue GrowthGrowth
-24.3%2/10

Revenue declined 24.3%

EPS GrowthGrowth
-91.6%2/10

Earnings declined 91.6%

WDC3 concerns · Avg: 3.3/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Price/BookValuation
27.5x2/10

Trading at 27.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CAN

The strongest argument for CAN centers on Price/Book, Debt/Equity.

Bull Case : WDC

The strongest argument for WDC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : CAN

The primary concerns for CAN are Market Cap, Return on Equity, Revenue Growth.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.

Key Dynamics to Monitor

CAN profiles as a turnaround stock while WDC is a growth play — different risk/reward profiles.

CAN carries more volatility with a beta of 2.54 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WDC scores higher overall (80/100 vs 30/100), backed by strong 55.3% margins and 45.5% revenue growth. CAN offers better value entry with a 89.9% margin of safety. Both earn "Exceptional Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Canaan Inc

TECHNOLOGY · COMPUTER HARDWARE · China

Canaan Inc. is engaged in the research, design and sale of IC end system products by integrating bitcoin mining IC products and related components mainly in the People's Republic of China. The company is headquartered in Hangzhou, the People's Republic of China.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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