Datadog (NASDAQ:DDOG) and Cango (NYSE:CANG) Head to Head Survey

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cango and Datadog, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cango	1	1	1	1	2.50
Datadog	1	4	38	2	2.91

Cango presently has a consensus price target of $30.00, suggesting a potential upside of 1,542.94%. Datadog has a consensus price target of $276.66, suggesting a potential upside of 25.07%. Given Cango’s higher probable upside, equities research analysts clearly believe Cango is more favorable than Datadog.

Valuation & Earnings

This table compares Cango and Datadog”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	0.05	-$621.95 million	($23.79)	-0.08
Datadog	$3.43 billion	23.18	$107.74 million	$0.49	451.45

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

Institutional and Insider Ownership

4.2% of Cango shares are held by institutional investors. Comparatively, 78.3% of Datadog shares are held by institutional investors. 29.1% of Cango shares are held by insiders. Comparatively, 6.5% of Datadog shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cango and Datadog’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%
Datadog	4.48%	5.67%	3.24%

Risk & Volatility

Cango has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Datadog has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Summary

Datadog beats Cango on 13 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 Datadog

Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.