ZipLink (OTCMKTS:ZIPL) and Cango (NYSE:CANG) Head to Head Survey

ZipLink (OTCMKTS:ZIPL) and Cango (NYSE:CANG) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

4.2% of Cango shares are owned by institutional investors. 57.5% of ZipLink shares are owned by insiders. Comparatively, 29.1% of Cango shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZipLink	N/A	N/A	N/A
Cango	-80.60%	-2.37%	-1.54%

Valuation and Earnings

This table compares ZipLink and Cango”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZipLink	N/A	N/A	N/A	N/A	N/A
Cango	$110.21 million	3.39	$41.07 million	($2.88)	-1.25

Cango has higher revenue and earnings than ZipLink.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ZipLink and Cango, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipLink	0	0	0	0	0.00
Cango	1	0	1	0	2.00

Cango has a consensus target price of $8.00, suggesting a potential upside of 122.22%. Given Cango’s stronger consensus rating and higher possible upside, analysts plainly believe Cango is more favorable than ZipLink.

Summary

Cango beats ZipLink on 5 of the 9 factors compared between the two stocks.

About ZipLink

This record represents the public shell of ZipLink, Inc. In November 2000, ZipLink, Inc. suspended its operations and announced the lay off of substantially all of its employees except those necessary to wind down operations. Ziplink, Inc. operated as a wholesale connectivity provider in North America for the Business-to-Business marketplace, including Internet service providers, competitive local exchange carriers, Web appliance vendors, and PC manufacturers and distributors, as of September 30, 2000. ZipLink also offered a range of Internet connectivity services for Internet appliances, including Internet access and subscriber authentication. The company was founded in 1995 and is based in Lowell, Massachusetts.

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.