Zillow Group (Z) and Zillow Group (ZG) Critical Analysis

Zillow Group (NASDAQ: Z) and Zillow Group (NASDAQ:ZG) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares Zillow Group and Zillow Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $846.59 million 9.13 -$220.43 million ($0.23) -177.91
Zillow Group $846.59 million 9.09 -$220.43 million ($0.23) -177.13

Zillow Group is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zillow Group and Zillow Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zillow Group -3.99% -0.25% -0.20%
Zillow Group -3.99% -0.25% -0.20%

Volatility and Risk

Zillow Group has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

58.0% of Zillow Group shares are held by institutional investors. Comparatively, 25.4% of Zillow Group shares are held by institutional investors. 21.7% of Zillow Group shares are held by company insiders. Comparatively, 20.9% of Zillow Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Zillow Group and Zillow Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 0 3 5 0 2.63
Zillow Group 0 9 8 0 2.47

Zillow Group currently has a consensus price target of $47.44, suggesting a potential upside of 15.93%. Zillow Group has a consensus price target of $47.31, suggesting a potential upside of 16.12%. Given Zillow Group’s higher possible upside, analysts clearly believe Zillow Group is more favorable than Zillow Group.

Summary

Zillow Group beats Zillow Group on 4 of the 7 factors compared between the two stocks.

About Zillow Group

Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable people find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company’s portfolio of consumer brands comprises real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, and Naked Apartments. It also owns and operates various brands comprising Mortech, dotloop, Bridge Interactive, and Retsly, as well as provides advertising services to real estate agents, and rental and mortgage professionals. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

About Zillow Group

Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable people find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company’s portfolio of consumer brands comprises real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, and Naked Apartments. It also owns and operates various brands comprising Mortech, dotloop, Bridge Interactive, and Retsly, as well as provides advertising services to real estate agents, and rental and mortgage professionals. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

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