Comparing Zillow Group (NASDAQ:Z) and GigaMedia (NASDAQ:GIGM)

GigaMedia (NASDAQ:GIGM) 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 institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Earnings & Valuation

This table compares GigaMedia and Zillow Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$3.47 million	4.59	-$1.55 million	($0.15)	-9.60
Zillow Group	$2.58 billion	2.94	$23.00 million	$0.25	132.91

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

Institutional and Insider Ownership

13.5% of GigaMedia shares are held by institutional investors. Comparatively, 71.0% of Zillow Group shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Comparatively, 23.8% of Zillow Group 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	1	0	0	0	1.00
Zillow Group	1	7	5	2	2.53

Zillow Group has a consensus price target of $76.00, indicating a potential upside of 128.72%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts plainly believe Zillow Group is more favorable than GigaMedia.

Volatility & Risk

GigaMedia has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GigaMedia	-50.86%	-4.52%	-4.24%
Zillow Group	2.27%	1.41%	1.22%

Summary

Zillow Group beats GigaMedia on 14 of the 15 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

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.