Porch Group (NASDAQ:PRCH – Get Free Report) and Cango (NYSE:CANG – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Analyst Recommendations
This is a summary of recent ratings for Porch Group and Cango, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Porch Group | 0 | 1 | 5 | 1 | 3.00 |
| Cango | 0 | 0 | 0 | 0 | 0.00 |
Porch Group presently has a consensus target price of $4.18, indicating a potential upside of 21.12%. Given Porch Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Porch Group is more favorable than Cango.
Risk & Volatility
Profitability
This table compares Porch Group and Cango’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Porch Group | -14.55% | N/A | -10.57% |
| Cango | 51.90% | 3.55% | 3.02% |
Earnings and Valuation
This table compares Porch Group and Cango”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Porch Group | $452.10 million | 0.91 | -$133.93 million | ($0.70) | -4.93 |
| Cango | $239.71 million | 1.73 | -$5.33 million | $0.17 | 22.41 |
Cango has lower revenue, but higher earnings than Porch Group. Porch Group is trading at a lower price-to-earnings ratio than Cango, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
48.5% of Porch Group shares are owned by institutional investors. Comparatively, 4.2% of Cango shares are owned by institutional investors. 23.5% of Porch Group shares are owned by company insiders. Comparatively, 29.1% of Cango shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Cango beats Porch Group on 8 of the 15 factors compared between the two stocks.
About Porch Group
Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 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.
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