Cango (NYSE:CANG – Get Free Report) and Rakuten (OTCMKTS:RKUNY – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Volatility and Risk
Cango has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Rakuten has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.
Valuation & Earnings
This table compares Cango and Rakuten”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cango | $688.08 million | 0.06 | -$621.95 million | ($3.56) | -0.06 |
| Rakuten | $16.70 billion | 0.60 | -$1.19 billion | ($0.37) | -12.35 |
Cango has higher earnings, but lower revenue than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Cango, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cango and Rakuten’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cango | -125.53% | -105.01% | -51.46% |
| Rakuten | -4.83% | -10.02% | -0.44% |
Institutional & Insider Ownership
4.2% of Cango shares are held by institutional investors. 29.1% of Cango shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Cango and Rakuten, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cango | 2 | 0 | 1 | 1 | 2.25 |
| Rakuten | 0 | 1 | 0 | 1 | 3.00 |
Cango currently has a consensus price target of $3.00, indicating a potential upside of 1,293.40%. Given Cango’s higher possible upside, equities research analysts plainly believe Cango is more favorable than Rakuten.
Summary
Rakuten beats Cango on 8 of the 14 factors compared between the two stocks.
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.
About Rakuten
Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.
Receive News & Ratings for Cango Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cango and related companies with MarketBeat.com's FREE daily email newsletter.
