Head to Head Comparison: Zillow Group (NASDAQ:Z) and Cango (NYSE:CANG)

Zillow Group (NASDAQ:Z) and Cango (NYSE:CANG) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Zillow Group has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Cango has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Zillow Group and Cango”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zillow Group	$2.58 billion	4.11	-$112.00 million	$0.09	486.89
Cango	$110.21 million	1.54	$41.07 million	($1.30)	-0.63

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Zillow Group and Cango, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zillow Group	1	8	3	1	2.31
Cango	1	1	1	1	2.50

Zillow Group presently has a consensus target price of $90.60, indicating a potential upside of 106.75%. Cango has a consensus target price of $3.00, indicating a potential upside of 267.51%. Given Cango’s stronger consensus rating and higher probable upside, analysts clearly believe Cango is more favorable than Zillow Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zillow Group	0.89%	0.56%	0.48%
Cango	-46.40%	2.29%	1.31%

Institutional and Insider Ownership

71.0% of Zillow Group shares are owned by institutional investors. Comparatively, 4.2% of Cango shares are owned by institutional investors. 25.0% of Zillow Group shares are owned by insiders. Comparatively, 29.1% of Cango shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Zillow Group beats Cango on 8 of the 14 factors compared between the two stocks.

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.

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.