Square Enix (OTCMKTS:SQNXF – Get Free Report) and Zillow Group (NASDAQ:Z – Get Free Report) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Square Enix and Zillow Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Square Enix | 1 | 0 | 0 | 0 | 1.00 |
| Zillow Group | 1 | 6 | 2 | 3 | 2.58 |
Zillow Group has a consensus target price of $79.75, suggesting a potential upside of 114.55%. Given Zillow Group’s stronger consensus rating and higher probable upside, analysts plainly believe Zillow Group is more favorable than Square Enix.
Volatility and Risk
Valuation and Earnings
This table compares Square Enix and Zillow Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Square Enix | $1.98 billion | 2.71 | $196.74 million | $0.67 | 22.16 |
| Zillow Group | $2.58 billion | 3.29 | $23.00 million | $0.25 | 148.68 |
Square Enix has higher earnings, but lower revenue than Zillow Group. Square Enix 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 Square Enix and Zillow Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Square Enix | N/A | N/A | N/A |
| Zillow Group | 2.27% | 1.41% | 1.22% |
Insider and Institutional Ownership
71.0% of Zillow Group shares are owned by institutional investors. 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 is poised for long-term growth.
Summary
Zillow Group beats Square Enix on 13 of the 15 factors compared between the two stocks.
About Square Enix
Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.
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.
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