Cango (NYSE:CANG – Get Free Report) and iQIYI (NASDAQ:IQ – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Insider & Institutional Ownership
4.2% of Cango shares are held by institutional investors. Comparatively, 52.7% of iQIYI shares are held by institutional investors. 29.1% of Cango shares are held by insiders. Comparatively, 57.8% of iQIYI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Cango and iQIYI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cango | 1 | 0 | 1 | 0 | 2.00 |
| iQIYI | 2 | 4 | 3 | 0 | 2.11 |
Profitability
This table compares Cango and iQIYI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cango | -80.60% | -2.37% | -1.54% |
| iQIYI | 0.32% | 2.26% | 0.66% |
Volatility & Risk
Cango has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, iQIYI has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500.
Valuation & Earnings
This table compares Cango and iQIYI”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cango | $2.85 billion | 0.13 | $41.07 million | ($2.88) | -1.21 |
| iQIYI | $27.67 billion | 0.07 | $104.68 million | $0.01 | 214.00 |
iQIYI has higher revenue and earnings than Cango. Cango is trading at a lower price-to-earnings ratio than iQIYI, indicating that it is currently the more affordable of the two stocks.
Summary
iQIYI beats Cango on 11 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 iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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