Reviewing SmartRent (NYSE:SMRT) and Cango (NYSE:CANG)

Cango (NYSE:CANG) and SmartRent (NYSE:SMRT) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Volatility & Risk

Cango has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, SmartRent has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Cango and SmartRent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cango	1	1	1	1	2.50
SmartRent	1	2	0	0	1.67

Cango presently has a consensus price target of $30.00, indicating a potential upside of 1,282.49%. SmartRent has a consensus price target of $1.20, indicating a potential upside of 3.90%. Given Cango’s stronger consensus rating and higher probable upside, equities analysts clearly believe Cango is more favorable than SmartRent.

Profitability

This table compares Cango and SmartRent’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%
SmartRent	-12.97%	-8.50%	-6.27%

Valuation & Earnings

This table compares Cango and SmartRent”s top-line revenue, earnings per share 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
SmartRent	$152.33 million	1.45	-$60.56 million	($0.10)	-11.55

SmartRent has lower revenue, but higher earnings than Cango. SmartRent is trading at a lower price-to-earnings ratio than Cango, 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, 59.4% of SmartRent shares are held by institutional investors. 29.1% of Cango shares are held by insiders. Comparatively, 2.3% of SmartRent shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

SmartRent beats Cango on 8 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 SmartRent

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.