Reviewing Cango (NYSE:CANG) and Intuit (NASDAQ:INTU)

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

Earnings & Valuation

This table compares Cango and Intuit”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cango	$1.79 billion	0.30	-$5.33 million	($0.02)	-255.75
Intuit	$18.18 billion	11.69	$2.96 billion	$12.32	61.86

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

Profitability

This table compares Cango and Intuit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cango	51.90%	3.55%	3.02%
Intuit	17.59%	18.25%	10.42%

Dividends

Cango pays an annual dividend of $0.98 per share and has a dividend yield of 19.2%. Intuit pays an annual dividend of $4.16 per share and has a dividend yield of 0.5%. Cango pays out -4,900.0% of its earnings in the form of a dividend. Intuit pays out 33.8% 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. Intuit has increased its dividend for 13 consecutive years. Cango is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

4.2% of Cango shares are owned by institutional investors. Comparatively, 83.7% of Intuit shares are owned by institutional investors. 29.1% of Cango shares are owned by insiders. Comparatively, 2.7% of Intuit shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Cango has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Intuit has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cango and Intuit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cango	0	0	0	0	0.00
Intuit	1	3	19	1	2.83

Intuit has a consensus price target of $785.33, indicating a potential upside of 3.05%. Given Intuit’s stronger consensus rating and higher probable upside, analysts clearly believe Intuit is more favorable than Cango.

Summary

Intuit beats Cango on 14 of the 18 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 Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.