Cango (NYSE:CANG) & MMTec (NASDAQ:MTC) Financial Contrast

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

Insider and Institutional Ownership

0.3% of MMTec shares are held by institutional investors. Comparatively, 4.2% of Cango shares are held by institutional investors. 12.8% of MMTec shares are held by insiders. Comparatively, 29.1% of Cango shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares MMTec and Cango’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MMTec	$1.10 million	142.42	-$5.64 million	N/A	N/A
Cango	$239.71 million	0.85	-$5.33 million	($0.07)	-21.57

Cango has higher revenue and earnings than MMTec.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MMTec	0	0	0	0	N/A
Cango	0	0	0	0	N/A

Risk and Volatility

MMTec has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Cango has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MMTec	N/A	N/A	N/A
Cango	-2.04%	-0.88%	-0.63%

Summary

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

About MMTec

MMTec, Inc., together with its subsidiaries, develops and deploys platforms that enable financial institutions to engage in securities market transactions and settlements worldwide. The company operates in two segments, Gujia and MM Global. It offers Internet-based securities solutions comprising Securities Dealers Trading System, which supports securities registration and clearing, account management, risk management, trading and execution, and third party access middleware; Private Fund Investment Management System that supports multi-account management, fund valuation, risk management, quantitative trading access, liquidation, and requisition management; and Mobile Transaction Individual Client System and PC Client System for Apple IOS, Android, PC, and Web applications. The company enables its customers to white label its trading interface, as well as select modular functionalities. It serves hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms. MMTec, Inc. was incorporated in 2018 and is headquartered in Sheung Wan, Hong Kong.

About Cango

Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturer, financial institutions, car buyers, and other industry participants in the People's Republic of China. The company offers automobile trading solutions comprising car sourcing, 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; and facilitation of car purchases for car buyers. It also provides automotive financing services that include facilitating financing transactions from financial institutions to 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.