Critical Survey: Lenovo Group (OTCMKTS:LNVGF) vs. Corsair Gaming (NASDAQ:CRSR)

Lenovo Group (OTCMKTS:LNVGF) and Corsair Gaming (NASDAQ:CRSR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for Lenovo Group and Corsair Gaming, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lenovo Group	0	0	0	0	N/A
Corsair Gaming	0	3	3	0	2.50

Corsair Gaming has a consensus target price of $18.00, indicating a potential upside of 37.09%. Given Corsair Gaming’s higher possible upside, analysts clearly believe Corsair Gaming is more favorable than Lenovo Group.

Valuation & Earnings

This table compares Lenovo Group and Corsair Gaming’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lenovo Group	N/A	N/A	N/A	$0.09	14.59
Corsair Gaming	$1.44 billion	0.94	-$60.92 million	$0.09	145.89

Lenovo Group has higher earnings, but lower revenue than Corsair Gaming. Lenovo Group is trading at a lower price-to-earnings ratio than Corsair Gaming, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

23.3% of Lenovo Group shares are owned by institutional investors. Comparatively, 24.2% of Corsair Gaming shares are owned by institutional investors. 65.2% of Corsair Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lenovo Group and Corsair Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lenovo Group	N/A	N/A	N/A
Corsair Gaming	0.19%	5.05%	2.49%

Summary

Corsair Gaming beats Lenovo Group on 10 of the 10 factors compared between the two stocks.

About Lenovo Group

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, stream decks, USB microphones, studio accessories, and EpocCam software. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato's streaming suite for streamers and content creators. In addition, it offers coaching and training, and other services. The company sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its website. Corsair Gaming, Inc. was incorporated in 1994 and is headquartered in Milpitas, California. Corsair Gaming, Inc. is a subsidiary of Corsair Group (Cayman), LP.