Datadog (NASDAQ:DDOG – Get Free Report) and Cango (NYSE:CANG – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent ratings for Datadog and Cango, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Datadog | 1 | 4 | 38 | 2 | 2.91 |
| Cango | 1 | 1 | 1 | 1 | 2.50 |
Datadog currently has a consensus target price of $276.66, indicating a potential upside of 17.23%. Cango has a consensus target price of $30.00, indicating a potential upside of 1,282.49%. Given Cango’s higher probable upside, analysts clearly believe Cango is more favorable than Datadog.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Datadog | $3.97 billion | 21.36 | $107.74 million | $0.49 | 481.63 |
| Cango | $556.87 million | 0.07 | -$621.95 million | ($23.79) | -0.09 |
Datadog has higher revenue and earnings than Cango. Cango is trading at a lower price-to-earnings ratio than Datadog, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Datadog has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Cango has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Profitability
This table compares Datadog and Cango’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Datadog | 4.48% | 5.67% | 3.24% |
| Cango | -107.22% | -165.48% | -75.08% |
Insider and Institutional Ownership
78.3% of Datadog shares are held by institutional investors. Comparatively, 4.2% of Cango shares are held by institutional investors. 6.5% of Datadog shares are held by company insiders. Comparatively, 29.1% of Cango shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Datadog beats Cango on 13 of the 15 factors compared between the two stocks.
About Datadog
Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.
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.
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