Cango (NYSE:CANG – Get Free Report) and Zillow Group (NASDAQ:Z – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
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% |
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 insiders. Comparatively, 23.8% of Zillow Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Analyst Ratings
This is a summary of recent ratings and recommmendations for Cango and Zillow Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cango | 1 | 1 | 1 | 1 | 2.50 |
| Zillow Group | 1 | 8 | 4 | 1 | 2.36 |
Cango presently has a consensus price target of $3.00, indicating a potential upside of 204.54%. Zillow Group has a consensus price target of $93.83, indicating a potential upside of 70.70%. Given Cango’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cango is more favorable than Zillow Group.
Earnings & Valuation
This table compares Cango and Zillow Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cango | $618.83 million | 0.33 | $41.07 million | ($1.30) | -0.76 |
| Zillow Group | $2.24 billion | 5.95 | -$112.00 million | ($0.14) | -392.64 |
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.
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 Zillow Group
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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