Domo (NASDAQ:DOMO – Get Free Report) and Cango (NYSE:CANG – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Institutional and Insider Ownership
76.6% of Domo shares are held by institutional investors. Comparatively, 4.2% of Cango shares are held by institutional investors. 13.3% of Domo shares are held by insiders. Comparatively, 29.1% of Cango shares are held by 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.
Earnings and Valuation
This table compares Domo and Cango”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Domo | $318.86 million | 0.49 | -$59.34 million | ($1.33) | -2.61 |
| Cango | $688.08 million | 0.09 | -$621.95 million | ($23.79) | -0.15 |
Domo has higher earnings, but lower revenue than Cango. Domo 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 Domo and Cango’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Domo | -13.37% | N/A | -25.31% |
| Cango | -107.22% | -165.48% | -75.08% |
Risk & Volatility
Domo has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Cango has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Domo and Cango, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Domo | 4 | 4 | 1 | 0 | 1.67 |
| Cango | 1 | 1 | 1 | 1 | 2.50 |
Domo presently has a consensus target price of $3.95, suggesting a potential upside of 13.79%. Cango has a consensus target price of $30.00, suggesting a potential upside of 746.02%. Given Cango’s stronger consensus rating and higher possible upside, analysts clearly believe Cango is more favorable than Domo.
Summary
Domo beats Cango on 8 of the 14 factors compared between the two stocks.
About Domo
Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.
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.
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