The accuracy of underwater acoustic targets recognition via limited ship radiated noise can be improved by a deep neural network trained with a large number of unlabeled samples. However, redundant features learned by deep neural network have negative effects on recognition accuracy and efficiency. A compressed deep competitive network is proposed to learn and extract features from ship radiated noise. The core idea of the algorithm includes: (1) Competitive learning: By integrating competitive learning into the restricted Boltzmann machine learning algorithm, the hidden units could share the weights in each predefined group; (2) Network pruning: The pruning based on mutual information is deployed to remove the redundant parameters and further compress the network. Experiments based on real ship radiated noise show that the network can increase recognition accuracy with fewer informative features. The compressed deep competitive network can achieve a classification accuracy of 89.1 % , which is 5.3 % higher than deep competitive network and 13.1 % higher than the state-of-the-art signal processing feature extraction methods.