Financial Review: Cango (NYSE:CANG) versus Datadog (NASDAQ:DDOG)

Datadog (NASDAQ:DDOG) and Cango (NYSE:CANG) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Datadog has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Cango has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Datadog and Cango”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datadog	$3.43 billion	23.18	$107.74 million	$0.49	451.45
Cango	$688.08 million	0.05	-$621.95 million	($23.79)	-0.08

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Datadog and Cango, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datadog	1	4	38	2	2.91
Cango	1	1	1	1	2.50

Datadog presently has a consensus target price of $276.66, indicating a potential upside of 25.07%. Cango has a consensus target price of $30.00, indicating a potential upside of 1,542.94%. Given Cango’s higher probable upside, analysts clearly believe Cango is more favorable than Datadog.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Datadog	4.48%	5.67%	3.24%
Cango	-107.22%	-165.48%	-75.08%

Institutional and Insider Ownership

78.3% of Datadog shares are owned by institutional investors. Comparatively, 4.2% of Cango shares are owned by institutional investors. 6.5% of Datadog shares are owned by insiders. Comparatively, 29.1% of Cango shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Datadog beats Cango on 13 of the 15 factors compared between the two stocks.

About Datadog

Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.

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.