Contrasting Assured Guaranty (NYSE:AGO) & Cheche Group (NASDAQ:CCG)

Cheche Group (NASDAQ:CCG) and Assured Guaranty (NYSE:AGO) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Cheche Group and Assured Guaranty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheche Group	N/A	N/A	N/A
Assured Guaranty	37.34%	7.11%	3.25%

Analyst Recommendations

This is a summary of recent ratings for Cheche Group and Assured Guaranty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheche Group	1	2	0	0	1.67
Assured Guaranty	0	1	3	0	2.75

Assured Guaranty has a consensus target price of $91.00, suggesting a potential upside of 29.54%. Given Assured Guaranty’s stronger consensus rating and higher probable upside, analysts clearly believe Assured Guaranty is more favorable than Cheche Group.

Volatility and Risk

Cheche Group has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Assured Guaranty has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

19.8% of Cheche Group shares are owned by institutional investors. Comparatively, 92.2% of Assured Guaranty shares are owned by institutional investors. 1.4% of Cheche Group shares are owned by company insiders. Comparatively, 5.7% of Assured Guaranty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Cheche Group and Assured Guaranty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheche Group	$430.40 million	0.04	-$2.47 million	($2.80)	-2.74
Assured Guaranty	$1.11 billion	2.78	$503.00 million	$7.50	9.37

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

Summary

Assured Guaranty beats Cheche Group on 14 of the 14 factors compared between the two stocks.

About Cheche Group

Cheche Group Inc. offer auto insurance technology platform. The company evolved into a comprehensive, data-driven technology platform which offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions principally in China. Cheche Group Inc., formerly known as Prime Impact, is headquartered in Beijing, China.

About Assured Guaranty

Assured Guaranty Ltd., together with its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. It operates through two segments: Insurance and Asset Management. The company offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It insures and reinsures various debt obligations, including bonds issued by the United States state governmental authorities; and notes issued to finance infrastructure projects. In addition, the company insures and reinsures various the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, renewable energy, and other public finance bonds. Further, the company involved in insuring and reinsuring of non-U.S. public finance obligations comprising regulated utilities, infrastructure finance, sovereign and sub-sovereign, renewable energy bonds, pooled infrastructure, and other public finance obligations; and the U.S. and non-U.S. Structured finance obligations, including residential mortgage-backed securities, life insurance transactions, consumer receivables securities, subscription finance facilities, pooled corporate obligations, and financial products. Additionally, it offers specialty business, such as real estate properties, insurance securitizations, and aircraft residual value insurance (RVI) transactions; and asset management services comprising investment advisory services. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. Assured Guaranty Ltd. was incorporated in 2003 and is headquartered in Hamilton, Bermuda.