Cango (NYSE:CANG – Get Free Report) and SmartRent (NYSE:SMRT – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Profitability
This table compares Cango and SmartRent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cango | -107.22% | -165.48% | -75.08% |
| SmartRent | -12.97% | -8.50% | -6.27% |
Valuation and Earnings
This table compares Cango and SmartRent”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cango | $556.87 million | 0.06 | -$621.95 million | ($23.79) | -0.09 |
| SmartRent | $151.20 million | 1.49 | -$60.56 million | ($0.10) | -11.75 |
SmartRent has lower revenue, but higher earnings than Cango. SmartRent is trading at a lower price-to-earnings ratio than Cango, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Cango and SmartRent, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cango | 1 | 1 | 1 | 1 | 2.50 |
| SmartRent | 1 | 2 | 0 | 0 | 1.67 |
Cango currently has a consensus price target of $30.00, suggesting a potential upside of 1,381.48%. SmartRent has a consensus price target of $1.20, suggesting a potential upside of 2.13%. Given Cango’s stronger consensus rating and higher probable upside, research analysts plainly believe Cango is more favorable than SmartRent.
Institutional and Insider Ownership
4.2% of Cango shares are owned by institutional investors. Comparatively, 59.4% of SmartRent shares are owned by institutional investors. 29.1% of Cango shares are owned by insiders. Comparatively, 2.3% of SmartRent 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.
Dividends
Cango pays an annual dividend of $0.98 per share and has a dividend yield of 48.4%. SmartRent pays an annual dividend of $0.30 per share and has a dividend yield of 25.5%. Cango pays out -4.1% of its earnings in the form of a dividend. SmartRent pays out -300.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
Cango has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, SmartRent has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.
Summary
SmartRent beats Cango on 9 of the 17 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 SmartRent
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.
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