Guidewire Software (NYSE:GWRE – Get Free Report) and Cango (NYSE:CANG – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Valuation & Earnings
This table compares Guidewire Software and Cango”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Guidewire Software | $1.48 billion | 7.90 | $139.28 million | $1.63 | 85.86 |
| Cango | $688.08 million | 0.05 | -$621.95 million | ($23.79) | -0.08 |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Guidewire Software and Cango, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Guidewire Software | 0 | 4 | 12 | 0 | 2.75 |
| Cango | 1 | 1 | 1 | 1 | 2.50 |
Guidewire Software presently has a consensus price target of $216.23, suggesting a potential upside of 54.50%. Cango has a consensus price target of $30.00, suggesting a potential upside of 1,569.45%. Given Cango’s higher probable upside, analysts plainly believe Cango is more favorable than Guidewire Software.
Institutional and Insider Ownership
4.2% of Cango shares are owned by institutional investors. 0.5% of Guidewire Software shares are owned by company insiders. Comparatively, 29.1% of Cango shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Guidewire Software has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Cango has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Profitability
This table compares Guidewire Software and Cango’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Guidewire Software | 9.44% | 12.66% | 6.73% |
| Cango | -107.22% | -165.48% | -75.08% |
Summary
Guidewire Software beats Cango on 10 of the 15 factors compared between the two stocks.
About Guidewire Software
Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; and Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, and Guidewire Explore cloud-native applications; and Guidewire Cyence, a cyber-risk economic modeling product. The company was incorporated in 2001 and is headquartered in San Mateo, California.
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.
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