Contrasting Cango (NYSE:CANG) & Salesforce (NYSE:CRM)

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.

Analyst Ratings

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
Salesforce	1	12	27	1	2.68
Cango	0	0	0	0	N/A

Salesforce currently has a consensus price target of $211.24, indicating a potential upside of 12.78%. Given Salesforce’s higher possible upside, equities analysts plainly believe Salesforce is more favorable than Cango.

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Salesforce	0.66%	4.48%	2.81%
Cango	-55.13%	-17.62%	-12.11%

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.

Summary

Salesforce beats Cango on 13 of the 14 factors compared between the two stocks.

About Salesforce

(Get Rating)

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.

About Cango

(Get Rating)

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.