Assured Guaranty (NYSE:AGO) vs. Cheche Group (NASDAQ:CCG) Financial Analysis

Assured Guaranty (NYSE:AGO) and Cheche Group (NASDAQ:CCG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Risk & Volatility

Assured Guaranty has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Cheche Group has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Earnings & Valuation

This table compares Assured Guaranty and Cheche Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assured Guaranty	$887.00 million	3.51	$503.00 million	$7.50	9.44
Cheche Group	$430.40 million	0.02	-$2.47 million	($2.80)	-1.71

Assured Guaranty has higher revenue and earnings than Cheche Group. Cheche Group is trading at a lower price-to-earnings ratio than Assured Guaranty, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Assured Guaranty and Cheche Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Assured Guaranty	37.34%	7.11%	3.25%
Cheche Group	N/A	N/A	N/A

Insider and Institutional Ownership

92.2% of Assured Guaranty shares are owned by institutional investors. Comparatively, 19.8% of Cheche Group shares are owned by institutional investors. 5.7% of Assured Guaranty shares are owned by company insiders. Comparatively, 1.4% of Cheche Group shares are owned by company insiders. 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Assured Guaranty and Cheche Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assured Guaranty	0	1	3	0	2.75
Cheche Group	1	2	0	0	1.67

Assured Guaranty presently has a consensus price target of $91.00, suggesting a potential upside of 28.48%. Given Assured Guaranty’s stronger consensus rating and higher possible upside, analysts clearly believe Assured Guaranty is more favorable than Cheche Group.

Summary

Assured Guaranty beats Cheche Group on 14 of the 14 factors compared between the two stocks.

About Assured Guaranty

Assured Guaranty Ltd., together with its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. It operates through two segments: Insurance and Asset Management. The company offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It insures and reinsures various debt obligations, including bonds issued by the United States state governmental authorities; and notes issued to finance infrastructure projects. In addition, the company insures and reinsures various the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, renewable energy, and other public finance bonds. Further, the company involved in insuring and reinsuring of non-U.S. public finance obligations comprising regulated utilities, infrastructure finance, sovereign and sub-sovereign, renewable energy bonds, pooled infrastructure, and other public finance obligations; and the U.S. and non-U.S. Structured finance obligations, including residential mortgage-backed securities, life insurance transactions, consumer receivables securities, subscription finance facilities, pooled corporate obligations, and financial products. Additionally, it offers specialty business, such as real estate properties, insurance securitizations, and aircraft residual value insurance (RVI) transactions; and asset management services comprising investment advisory services. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. Assured Guaranty Ltd. was incorporated in 2003 and is headquartered in Hamilton, Bermuda.

About Cheche Group

Cheche Group Inc. offer auto insurance technology platform. The company evolved into a comprehensive, data-driven technology platform which offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions principally in China. Cheche Group Inc., formerly known as Prime Impact, is headquartered in Beijing, China.