Financial Analysis: Amesite (NASDAQ:AMST) versus Cango (NYSE:CANG)

Amesite (NASDAQ:AMST – Get Rating) and Cango (NYSE:CANG – Get Rating) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amesite	$60,000.00	248.85	-$4.17 million	N/A	N/A
Cango	$615.40 million	0.70	-$1.34 million	($0.01)	-307.69

Cango has higher revenue and earnings than Amesite.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amesite	N/A	N/A	N/A
Cango	-0.10%	-0.05%	-0.03%

Risk and Volatility

Amesite has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500. Comparatively, Cango has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Amesite and Cango, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amesite	0	0	0	0	N/A
Cango	0	0	0	0	N/A

Insider & Institutional Ownership

4.2% of Amesite shares are held by institutional investors. Comparatively, 22.5% of Cango shares are held by institutional investors. 42.6% of Amesite shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Amesite beats Cango on 5 of the 9 factors compared between the two stocks.

About Amesite (Get Rating)

Amesite Inc., an artificial intelligence driven platform and course designer, provides online products in the United States. The company uses machine learning to offer a mass customized experience to learners. Its customers include businesses, universities and colleges, K-12 schools, and non-profit organizations. The company was incorporated in 2017 and is headquartered in Detroit, Michigan.

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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