Zillow Group (NASDAQ:Z – Get Free Report) and Teads (NASDAQ:TEAD – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Valuation and Earnings
This table compares Zillow Group and Teads”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.58 billion | 2.82 | $23.00 million | $0.22 | 147.00 |
| Teads | $571.30 million | 0.04 | -$517.07 million | ($5.53) | -0.05 |
Zillow Group has higher revenue and earnings than Teads. Teads 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 Teads’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | 1.96% | 2.32% | 1.97% |
| Teads | -43.32% | -49.37% | -6.14% |
Risk and Volatility
Zillow Group has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Teads has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Institutional and Insider Ownership
71.0% of Zillow Group shares are held by institutional investors. Comparatively, 60.4% of Teads shares are held by institutional investors. 23.8% of Zillow Group shares are held by insiders. Comparatively, 12.0% of Teads shares are held by 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.
Analyst Recommendations
This is a summary of current recommendations and price targets for Zillow Group and Teads, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 8 | 5 | 1 | 2.40 |
| Teads | 1 | 2 | 1 | 0 | 2.00 |
Zillow Group currently has a consensus price target of $57.71, indicating a potential upside of 78.46%. Teads has a consensus price target of $1.00, indicating a potential upside of 284.47%. Given Teads’ higher probable upside, analysts plainly believe Teads is more favorable than Zillow Group.
Summary
Zillow Group beats Teads on 14 of the 15 factors compared between the two stocks.
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.
About Teads
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
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