Critical Contrast: PTC (NASDAQ:PTC) vs. Cango (NYSE:CANG)

Cango (NYSE:CANG) and PTC (NASDAQ:PTC) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Volatility & Risk

Cango has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, PTC has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Insider & Institutional Ownership

4.2% of Cango shares are owned by institutional investors. Comparatively, 95.1% of PTC shares are owned by institutional investors. 29.1% of Cango shares are owned by insiders. Comparatively, 0.3% of PTC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cango and PTC’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%
PTC	41.67%	25.31%	14.55%

Analyst Ratings

This is a summary of recent ratings and target prices for Cango and PTC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cango	2	0	1	1	2.25
PTC	0	14	2	0	2.12

Cango currently has a consensus price target of $30.00, indicating a potential upside of 1,298.60%. PTC has a consensus price target of $200.06, indicating a potential upside of 3.63%. Given Cango’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cango is more favorable than PTC.

Earnings & Valuation

This table compares Cango and PTC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cango	$688.08 million	0.06	-$621.95 million	($23.79)	-0.09
PTC	$2.95 billion	7.09	$734.00 million	$10.34	18.67

PTC has higher revenue and earnings than Cango. Cango is trading at a lower price-to-earnings ratio than PTC, indicating that it is currently the more affordable of the two stocks.

Summary

PTC beats Cango on 10 of the 15 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 PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.