Zillow Group (NASDAQ:Z – Get Free Report) and Alphabet (NASDAQ:GOOG – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
Zillow Group has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Insider & Institutional Ownership
71.0% of Zillow Group shares are held by institutional investors. Comparatively, 27.3% of Alphabet shares are held by institutional investors. 25.0% of Zillow Group shares are held by company insiders. Comparatively, 13.0% of Alphabet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | 2.27% | 1.41% | 1.22% |
| Alphabet | 37.92% | 38.99% | 27.41% |
Earnings & Valuation
This table compares Zillow Group and Alphabet”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.58 billion | 3.11 | $23.00 million | $0.25 | 140.24 |
| Alphabet | $402.84 billion | 11.00 | $132.17 billion | $13.11 | 27.90 |
Alphabet has higher revenue and earnings than Zillow Group. Alphabet is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Zillow Group and Alphabet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 7 | 4 | 2 | 2.50 |
| Alphabet | 0 | 4 | 29 | 5 | 3.03 |
Zillow Group currently has a consensus price target of $77.00, suggesting a potential upside of 119.62%. Alphabet has a consensus price target of $376.00, suggesting a potential upside of 2.80%. Given Zillow Group’s higher probable upside, equities analysts plainly believe Zillow Group is more favorable than Alphabet.
Summary
Alphabet beats Zillow Group on 10 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 Alphabet
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
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