Critical Survey: Zillow Group (NASDAQ:Z) vs. Cango (NYSE:CANG)

Cango (NYSE:CANGGet Free Report) and Zillow Group (NASDAQ:ZGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Valuation & Earnings

This table compares Cango and Zillow Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cango $618.83 million 0.32 $41.07 million ($1.30) -0.74
Zillow Group $2.24 billion 6.04 -$112.00 million ($0.14) -398.24

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

Institutional and Insider Ownership

4.2% of Cango shares are owned by institutional investors. Comparatively, 71.0% of Zillow Group shares are owned by institutional investors. 29.1% of Cango shares are owned by company insiders. Comparatively, 25.0% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Cango has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500.

Profitability

This table compares Cango and Zillow Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cango -46.40% 2.29% 1.31%
Zillow Group -1.29% -0.56% -0.48%

Analyst Recommendations

This is a summary of current recommendations for Cango and Zillow Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cango 1 1 1 1 2.50
Zillow Group 1 8 4 3 2.56

Cango currently has a consensus price target of $3.00, indicating a potential upside of 210.88%. Zillow Group has a consensus price target of $93.83, indicating a potential upside of 68.30%. Given Cango’s higher possible upside, analysts plainly believe Cango is more favorable than Zillow Group.

Summary

Zillow Group beats Cango on 9 of the 15 factors compared between the two stocks.

About Cango

(Get Free Report)

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 Zillow Group

(Get Free Report)

Zillow Group, Inc. operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services. In addition, the company's brand portfolio includes Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, StreetEasy, HotPads, and Out East; and a suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce, and Follow Up Boss. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.

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