Contrasting Cango (NYSE:CANG) & Motorsport Games (NASDAQ:MSGM)

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

Profitability

This table compares Cango and Motorsport Games’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cango 99.11% 48.38% 31.67%
Motorsport Games N/A -67.03% -49.91%

Earnings and Valuation

This table compares Cango and Motorsport Games’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cango $314.55 million 2.03 $516.40 million $3.40 1.25
Motorsport Games $19.05 million 12.76 -$1.76 million ($0.25) -54.68

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

Analyst Recommendations

This is a summary of current ratings for Cango and Motorsport Games, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cango 0 0 0 0 N/A
Motorsport Games 0 0 4 0 3.00

Motorsport Games has a consensus target price of $22.50, suggesting a potential upside of 64.59%. Given Motorsport Games’ higher possible upside, analysts clearly believe Motorsport Games is more favorable than Cango.

Institutional and Insider Ownership

24.1% of Cango shares are owned by institutional investors. Comparatively, 15.7% of Motorsport Games shares are owned by institutional investors. 2.0% of Motorsport Games shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Cango beats Motorsport Games on 8 of the 12 factors compared between the two stocks.

Cango Company Profile

Cango, Inc. (Cayman island) is a holding company, which engages in the development and operation of automotive transaction service platform for connecting dealers, financial institutions, and car buyers. Is services cover each key component of the automotive transaction value chain, including pre-sale automobile trading solutions, during-sale automotive financing facilitation services, and post-sale after-market services facilitation. The company was founded by Jia Yuan Lin and Xiao Jun Zhang in August 2010 and is headquartered in Shanghai, China.

Motorsport Games Company Profile

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers video games for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. Motorsport Games Inc. was founded in 2018 and is headquartered in Miami, Florida.

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