Contrasting Data Storage (NASDAQ:DTST) & Zillow Group (NASDAQ:Z)

Data Storage (NASDAQ:DTST) and Zillow Group (NASDAQ:Z) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Data Storage and Zillow Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data Storage	1	2	0	0	1.67
Zillow Group	1	7	5	2	2.53

Zillow Group has a consensus target price of $76.00, suggesting a potential upside of 144.92%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts plainly believe Zillow Group is more favorable than Data Storage.

Risk & Volatility

Data Storage has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data Storage	81.52%	-3.76%	-3.32%
Zillow Group	2.27%	1.41%	1.22%

Valuation & Earnings

This table compares Data Storage and Zillow Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data Storage	$1.38 million	5.81	$19.20 million	($0.33)	-11.20
Zillow Group	$2.58 billion	2.75	$23.00 million	$0.25	124.12

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

Insider and Institutional Ownership

11.6% of Data Storage shares are owned by institutional investors. Comparatively, 71.0% of Zillow Group shares are owned by institutional investors. 43.8% of Data Storage shares are owned by company insiders. Comparatively, 23.8% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Zillow Group beats Data Storage on 12 of the 15 factors compared between the two stocks.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.

About Zillow Group

Zillow Group, Inc. operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services. In addition, the company's brand portfolio includes Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, StreetEasy, HotPads, and Out East; and a suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce, and Follow Up Boss. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.