Zillow Group (NASDAQ:ZG – Get Free Report) and Paymentus (NYSE:PAY – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Insider and Institutional Ownership
20.3% of Zillow Group shares are owned by institutional investors. Comparatively, 78.4% of Paymentus shares are owned by institutional investors. 17.1% of Zillow Group shares are owned by company insiders. Comparatively, 87.8% of Paymentus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Zillow Group and Paymentus”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.24 billion | 7.27 | -$112.00 million | ($0.47) | -142.51 |
| Paymentus | $871.75 million | 4.92 | $22.32 million | $0.34 | 100.85 |
Paymentus has lower revenue, but higher earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Zillow Group and Paymentus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 9 | 12 | 0 | 2.50 |
| Paymentus | 0 | 5 | 2 | 1 | 2.50 |
Zillow Group presently has a consensus target price of $80.10, suggesting a potential upside of 19.59%. Paymentus has a consensus target price of $30.00, suggesting a potential downside of 12.51%. Given Zillow Group’s higher possible upside, equities research analysts clearly believe Zillow Group is more favorable than Paymentus.
Volatility and Risk
Zillow Group has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.
Profitability
This table compares Zillow Group and Paymentus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | -5.01% | -2.12% | -1.56% |
| Paymentus | 5.19% | 10.84% | 9.24% |
Summary
Paymentus beats Zillow Group on 9 of the 14 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 Paymentus
Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.
Receive News & Ratings for Zillow Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zillow Group and related companies with MarketBeat.com's FREE daily email newsletter.
