Head-To-Head Contrast: Zillow Group (NASDAQ:ZG) versus Realogy Holdings Corp. (RLGY)
Zillow Group (NASDAQ: ZG) and Realogy Holdings Corp. (NYSE:RLGY) are both mid-cap computer and technology 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, profitabiliy and risk.
Risk & Volatility
Zillow Group has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Realogy Holdings Corp. has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
Realogy Holdings Corp. pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Zillow Group does not pay a dividend. Realogy Holdings Corp. pays out 21.1% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Zillow Group and Realogy Holdings Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Zillow Group||$906.38 million||9.65||$48.84 million||($0.99)||-48.22|
|Realogy Holdings Corp.||$5.88 billion||0.81||$760.00 million||$1.71||20.39|
Realogy Holdings Corp. has higher revenue and earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than Realogy Holdings Corp., indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.8% of Zillow Group shares are held by institutional investors. 20.9% of Zillow Group shares are held by insiders. Comparatively, 1.8% of Realogy Holdings Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Zillow Group and Realogy Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Realogy Holdings Corp.||4.06%||9.53%||3.13%|
This is a breakdown of current ratings and price targets for Zillow Group and Realogy Holdings Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Realogy Holdings Corp.||1||2||4||0||2.43|
Zillow Group presently has a consensus price target of $43.85, suggesting a potential downside of 8.16%. Realogy Holdings Corp. has a consensus price target of $34.86, suggesting a potential downside of 0.01%. Given Realogy Holdings Corp.’s higher possible upside, analysts clearly believe Realogy Holdings Corp. is more favorable than Zillow Group.
Realogy Holdings Corp. beats Zillow Group on 8 of the 15 factors compared between the two stocks.
Realogy Holdings Corp. Company Profile
Realogy Holdings Corp. is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company’s operating platform is supported by the Company’s portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby’s International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. On August 14, 2014, Realogy Holdings Corp, through its Realogy Group LLC wholly owned subsidiary, acquired ZipRealty Inc (ZipRealty).
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