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

Institutional & Insider Ownership

26.1% of Zillow Group shares are owned by institutional investors. 20.9% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Forest City Enterprises and Zillow Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forest City Enterprises 0 2 1 0 2.33
Zillow Group 0 7 9 0 2.56

Forest City Enterprises currently has a consensus price target of $26.25, suggesting a potential upside of 3.35%. Zillow Group has a consensus price target of $45.00, suggesting a potential upside of 10.21%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts plainly believe Zillow Group is more favorable than Forest City Enterprises.

Profitability

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

Net Margins Return on Equity Return on Assets
Forest City Enterprises N/A N/A N/A
Zillow Group -4.47% -0.40% -0.33%

Earnings & Valuation

This table compares Forest City Enterprises and Zillow Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Forest City Enterprises $955.86 million 7.09 $450.04 million N/A N/A
Zillow Group $964.83 million 7.85 $35.12 million ($0.24) -170.13

Forest City Enterprises has higher revenue, but lower earnings than Zillow Group.

Summary

Zillow Group beats Forest City Enterprises on 7 of the 11 factors compared between the two stocks.

About Forest City Enterprises

Forest City Realty Trust, Inc is a real estate investment trust. It was formerly known as Forest City Enterprises, Inc. Forest City Realty Trust, Inc was founded in 1920 and is headquartered in Cleveland, Ohio.

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.

Receive News & Stock Ratings for Forest City Enterprises Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Forest City Enterprises and related stocks with our FREE daily email newsletter.