Microsoft (NASDAQ:MSFT) and Cango (NYSE:CANG) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Institutional & Insider Ownership
71.6% of Microsoft shares are owned by institutional investors. Comparatively, 21.2% of Cango shares are owned by institutional investors. 1.4% of Microsoft shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Microsoft and Cango’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Microsoft and Cango, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Microsoft presently has a consensus target price of $122.29, suggesting a potential upside of 15.46%. Cango has a consensus target price of $11.90, suggesting a potential upside of 70.14%. Given Cango’s higher possible upside, analysts plainly believe Cango is more favorable than Microsoft.
Valuation & Earnings
This table compares Microsoft and Cango’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Microsoft||$110.36 billion||7.43||$16.57 billion||$3.88||27.44|
|Cango||$167.74 million||6.30||$54.36 million||N/A||N/A|
Microsoft has higher revenue and earnings than Cango.
Microsoft pays an annual dividend of $1.84 per share and has a dividend yield of 1.7%. Cango does not pay a dividend. Microsoft pays out 47.4% of its earnings in the form of a dividend. Microsoft has raised its dividend for 15 consecutive years.
Microsoft beats Cango on 13 of the 15 factors compared between the two stocks.
Microsoft Company Profile
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises. The company's Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; enterprise services, including premier support and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions, as well as providing training and certification to developers and IT professionals on Microsoft products. Its More Personal Computing segment offers Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, and MSN display advertising; devices comprising Surface, PC accessories, and other intelligent devices; Xbox hardware and software and services; and Bing and Bing Ads search advertising. The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as through online and Microsoft retail stores. Microsoft Corporation has collaboration with E.ON; a strategic alliance with Nielsen Holdings plc; and a strategic collaboration with Mastercard Incorporated. The company was founded in 1975 and is headquartered in Redmond, Washington.
Cango Company Profile
Cango Inc. operates an automotive transaction service platform that connects dealers, financial institutions, car buyers, and other industry participants in the People's Republic of China. It facilitates automotive financing services that include facilitating financing transactions from financial institutions to car buyers; automotive transactions between automotive wholesalers, dealers, and car buyers; and after-market services to car buyers. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.
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