Cango (NYSE:CANG – Get Free Report) and Porch Group (NASDAQ:PRCH – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
4.2% of Cango shares are held by institutional investors. Comparatively, 48.5% of Porch Group shares are held by institutional investors. 29.1% of Cango shares are held by company insiders. Comparatively, 23.5% of Porch Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Cango has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Porch Group has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cango | $239.71 million | 1.88 | -$5.33 million | $0.17 | 24.29 |
| Porch Group | $452.10 million | 0.93 | -$133.93 million | ($0.70) | -5.01 |
Cango has higher earnings, but lower revenue than Porch Group. Porch Group is trading at a lower price-to-earnings ratio than Cango, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cango and Porch Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cango | 51.90% | 3.55% | 3.02% |
| Porch Group | -14.55% | N/A | -10.57% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Cango and Porch Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cango | 0 | 0 | 0 | 0 | 0.00 |
| Porch Group | 0 | 1 | 5 | 1 | 3.00 |
Porch Group has a consensus target price of $4.18, suggesting a potential upside of 19.05%. Given Porch Group’s stronger consensus rating and higher possible upside, analysts plainly believe Porch Group is more favorable than Cango.
Summary
Cango beats Porch Group on 8 of the 15 factors compared between the two stocks.
About Cango
Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturers, financial institutions, car buyers, insurance brokers, and companies in the People's Republic of China. The company offers automobile trading solutions comprising car sourcing, transaction facilitation, logistics, and warehousing support for dealers through Cango Haoche app that offers new car transaction services, and Cango U-Car app that offers used-car transaction services. It also provides automotive financing facilitation services that include facilitating financing transactions from financial institutions to car buyers, which comprises credit origination, credit assessment, credit servicing, and delinquent asset management services; facilitating financing transactions of car purchases for car buyers; and after-market services to car buyers, which includes facilitating the sale of insurance policies from insurance brokers or companies. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.
About Porch Group
Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.
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