Head-To-Head Survey: Cango (NYSE:CANG) versus PLAYSTUDIOS (NASDAQ:MYPS)

PLAYSTUDIOS (NASDAQ:MYPS – Get Rating) and Cango (NYSE:CANG – Get Rating) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Risk and Volatility

PLAYSTUDIOS has a beta of -1.56, indicating that its share price is 256% less volatile than the S&P 500. Comparatively, Cango has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PLAYSTUDIOS	-7.19%	-7.54%	-6.67%
Cango	-0.10%	-0.05%	-0.03%

Analyst Recommendations

This is a breakdown of current recommendations for PLAYSTUDIOS and Cango, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLAYSTUDIOS	0	1	3	0	2.75
Cango	0	0	0	0	N/A

PLAYSTUDIOS currently has a consensus price target of $9.55, suggesting a potential upside of 64.66%. Given PLAYSTUDIOS’s higher possible upside, research analysts clearly believe PLAYSTUDIOS is more favorable than Cango.

Earnings & Valuation

This table compares PLAYSTUDIOS and Cango’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLAYSTUDIOS	$287.42 million	2.55	$10.74 million	($0.19)	-30.53
Cango	$615.40 million	0.65	-$1.34 million	($0.01)	-285.71

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

Insider and Institutional Ownership

14.1% of PLAYSTUDIOS shares are held by institutional investors. Comparatively, 22.5% of Cango shares are held by institutional investors. 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.

Summary

Cango beats PLAYSTUDIOS on 7 of the 12 factors compared between the two stocks.

About PLAYSTUDIOS (Get Rating)

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States, North America, and internationally. The company is headquartered in Las Vegas, Nevada.

About Cango (Get Rating)

Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturer, financial institutions, car buyers, and other industry participants in the People's Republic of China. The company offers automobile trading solutions, including car sourcing, logistics, and warehousing support for dealers; and facilitation of car purchases for car buyers. It also facilitates automotive financing services that include facilitating financing transactions from financial institutions to 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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