Critical Survey: Cango (CANG) vs. Its Peers

Cango (NYSE: CANG) is one of 197 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its peers? We will compare Cango to similar companies based on the strength of its analyst recommendations, dividends, profitability, risk, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

21.9% of Cango shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Prepackaged software” companies are owned by institutional investors. 21.2% of shares of all “Prepackaged software” companies are owned 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.

Profitability

This table compares Cango and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cango 27.82% 14.26% 5.36%
Cango Competitors -39.03% -24.47% -3.64%

Analyst Ratings

This is a summary of recent recommendations for Cango and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cango 0 1 1 0 2.50
Cango Competitors 1696 7949 14602 728 2.58

Cango currently has a consensus price target of $11.90, indicating a potential upside of 70.00%. As a group, “Prepackaged software” companies have a potential upside of 5.18%. Given Cango’s higher probable upside, equities analysts clearly believe Cango is more favorable than its peers.

Earnings and Valuation

This table compares Cango and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cango $158.74 million $44.03 million 22.58
Cango Competitors $1.91 billion $226.94 million 38.08

Cango’s peers have higher revenue and earnings than Cango. Cango is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Cango peers beat Cango on 8 of the 12 factors compared.

About Cango

Cango Inc. operates an automotive transaction service platform that connects dealers, financial institutions, car buyers, and other industry participants in the People's Republic of China. It facilitates automotive financing services that include facilitating financing transactions from financial institutions to car buyers; automotive transactions between automotive wholesalers, dealers, and car buyers; and after-market services to car buyers. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.

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