Zillow Group (NASDAQ:ZG) & NerdWallet (NASDAQ:NRDS) Critical Contrast

NerdWallet (NASDAQ:NRDSGet Free Report) and Zillow Group (NASDAQ:ZGGet Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NerdWallet $836.60 million 0.76 $48.70 million $0.89 11.18
Zillow Group $2.58 billion 3.07 $23.00 million $0.22 160.36

NerdWallet has higher earnings, but lower revenue than Zillow Group. NerdWallet 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 NerdWallet and Zillow Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NerdWallet 7.56% 18.07% 14.41%
Zillow Group 1.96% 2.32% 1.97%

Insider and Institutional Ownership

38.8% of NerdWallet shares are held by institutional investors. Comparatively, 20.3% of Zillow Group shares are held by institutional investors. 52.7% of NerdWallet shares are held by company insiders. Comparatively, 29.9% of Zillow Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

NerdWallet has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for NerdWallet and Zillow Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NerdWallet 1 3 4 0 2.38
Zillow Group 1 13 11 0 2.40

NerdWallet presently has a consensus target price of $12.83, indicating a potential upside of 28.98%. Zillow Group has a consensus target price of $52.29, indicating a potential upside of 48.20%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts clearly believe Zillow Group is more favorable than NerdWallet.

About NerdWallet

(Get Free Report)

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.

About Zillow Group

(Get Free Report)

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.

Receive News & Ratings for NerdWallet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NerdWallet and related companies with MarketBeat.com's FREE daily email newsletter.