Chykingyoung Investment Development (OTCMKTS:CHYI) and Cango (NYSE:CANG) Critical Comparison

Chykingyoung Investment Development (OTCMKTS:CHYI) and Cango (NYSE:CANG) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

4.2% of Cango shares are owned by institutional investors. 34.6% of Chykingyoung Investment Development shares are owned by insiders. Comparatively, 29.1% of Cango shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Chykingyoung Investment Development and Cango, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chykingyoung Investment Development	0	0	0	0	0.00
Cango	0	0	1	0	3.00

Cango has a consensus target price of $8.00, suggesting a potential upside of 65.98%. Given Cango’s stronger consensus rating and higher probable upside, analysts clearly believe Cango is more favorable than Chykingyoung Investment Development.

Earnings & Valuation

This table compares Chykingyoung Investment Development and Cango”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chykingyoung Investment Development	$110,000.00	2,507.53	-$1.10 million	$0.06	11.62
Cango	$110.21 million	4.54	$41.07 million	($0.02)	-241.00

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

Risk and Volatility

Chykingyoung Investment Development has a beta of 5.96, indicating that its stock price is 496% more volatile than the S&P 500. Comparatively, Cango has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares Chykingyoung Investment Development and Cango’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chykingyoung Investment Development	-961.40%	N/A	N/A
Cango	0.24%	0.11%	0.08%

Summary

Cango beats Chykingyoung Investment Development on 9 of the 14 factors compared between the two stocks.

About Chykingyoung Investment Development

Chykingyoung Investment Development Holdings Inc., through its subsidiary, OneWorld Hotel Destination Service Inc., provides Internet hotel booking services. The company offers a proprietary online hotel booking program for connecting users with available rooms in hotels worldwide. It primarily serves travel agents in Vancouver, Toronto, Calgary, and Montreal, Canada. The company was founded in 2006 and is based in Vancouver, Canada.

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.