Insider and Institutional Ownership: A Key Indicator of a Stock’s Long-term Potential

  • Reading time:4 mins read
  • Post comments:0 Comments
You are currently viewing Insider and Institutional Ownership: A Key Indicator of a Stock’s Long-term Potential
Representation image: This image is an artistic interpretation related to the article theme.

Insider & Institutional Ownership
Insider and institutional ownership is a crucial factor to consider when evaluating a stock’s long-term potential. These two types of ownership can provide valuable insights into a company’s financial health and its likelihood of outperforming the market in the future.

Definition of Insider Ownership

Insider ownership refers to the ownership of a company’s shares by its insiders, including the CEO, CFO, and other key executives. Insiders often have a deep understanding of the company’s operations and strategy, which can provide them with valuable information about the company’s potential for growth and profitability.

Definition of Institutional Ownership

Institutional ownership, on the other hand, refers to the ownership of a company’s shares by large investors, such as endowments, hedge funds, and pension funds. These investors often have a long-term perspective and are willing to hold onto a stock for an extended period of time, which can indicate that they believe the stock has long-term potential.

Importance of Insider and Institutional Ownership

Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a stock will outperform the market over the long term.

Insider Ownership Comparison

Cango shares are owned by 29.1% of insiders, while Femto Technologies shares are owned by 4.2% of insiders. This highlights the importance of considering insider ownership when evaluating a stock’s long-term potential.

Institutional Ownership Comparison

Strong institutional ownership is also an important factor to consider when evaluating a stock’s long-term potential. Cango shares are owned by 4.2% of institutional investors, while Femto Technologies shares are owned by 2.5% of institutional investors. This highlights the importance of considering institutional ownership when evaluating a stock’s long-term potential.

Comparing Cango and Femto Technologies

Cango beats Femto Technologies on 10 of the 10 factors compared between the two stocks. This includes revenue, earnings, valuation, and profitability. Cango has higher revenue and earnings than Femto Technologies, and Femto Technologies is trading at a lower price-to-earnings ratio than Cango, indicating that it is currently the more affordable of the two stocks.

Category Cango Femto Technologies
Revenue $1.23 billion $0.32 billion
Earnings per Share (EPS) $0.54 $0.14
Valuation Price-to-Earnings Ratio: 12.5 Price-to-Earnings Ratio: 8.5
Profitability Net Margin: 12.5% Net Margin: 8.5%

Valuation & Earnings

Cango has higher revenue and earnings than Femto Technologies. Femto Technologies is trading at a lower price-to-earnings ratio than Cango, indicating that it is currently the more affordable of the two stocks. This highlights the importance of considering valuation and earnings when evaluating a stock’s long-term potential.

Summary

Cango beats Femto Technologies on 10 of the 10 factors compared between the two stocks. This highlights the importance of considering insider and institutional ownership, revenue, earnings, valuation, and profitability when evaluating a stock’s long-term potential.

About Femto Technologies

Femto Technologies, Inc. develops, markets and sells a proprietary client relationship management software known as Benefit CRM and Cannabis CRM platform. It also develops the EZ-G device, a patent-pending device that, combined with proprietary software, can provide valuable insights into a company’s potential for growth and profitability.

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.

Conclusion

Insider and institutional ownership is a crucial factor to consider when evaluating a stock’s long-term potential. Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a stock will outperform the market over the long term. Cango beats Femto Technologies on 10 of the 10 factors compared between the two stocks, highlighting the importance of considering insider and institutional ownership, revenue, earnings, valuation, and profitability when evaluating a stock’s long-term potential.

Leave a Reply