Salesforce (NYSE:CRM – Get Rating) and Cango (NYSE:CANG – Get Rating) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Volatility & Risk
Salesforce has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Cango has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Salesforce and Cango, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation & Earnings
This table compares Salesforce and Cango’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Salesforce||$31.35 billion||5.97||$208.00 million||$0.21||891.95|
|Cango||$287.14 million||0.52||-$161.11 million||($1.19)||-0.90|
Salesforce has higher revenue and earnings than Cango. Cango is trading at a lower price-to-earnings ratio than Salesforce, indicating that it is currently the more affordable of the two stocks.
This table compares Salesforce and Cango’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
75.8% of Salesforce shares are owned by institutional investors. Comparatively, 23.1% of Cango shares are owned by institutional investors. 3.6% of Salesforce shares are owned by insiders. Comparatively, 29.1% of Cango shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Salesforce beats Cango on 13 of the 14 factors compared between the two stocks.
Salesforce, Inc. engages in the design and development of cloud-based enterprise software for customer relationship management. Its solutions include sales force automation, customer service and support, marketing automation, digital commerce, community management, collaboration, industry-specific solutions, and salesforce platform. The firm also provides guidance, support, training, and advisory services. The company was founded by Marc Russell Benioff and Parker Harris in 1999 and is headquartered in San Francisco, CA.
Cango, Inc. is a holding company, which engages in the development and operation of automotive transaction service platform for connecting dealers, financial institutions, and car buyers. The firm’s services cover each key component of the automotive transaction value chain, including pre-sale automobile trading solutions, during-sale automotive financing facilitation services, and post-sale after-market services facilitation. The company was founded by Jia Yuan Lin and Xiao Jun Zhang in August 2010 and is headquartered in Shanghai, China.
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