Comparing Zillow Group (NASDAQ:ZG) and NerdWallet (NASDAQ:NRDS)

NerdWallet (NASDAQ:NRDS) and Zillow Group (NASDAQ:ZG) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares NerdWallet and Zillow Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NerdWallet	$860.00 million	0.73	$48.70 million	$0.89	11.10
Zillow Group	$2.58 billion	3.20	$23.00 million	$0.22	167.18

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.

Risk and 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.

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%

Analyst Recommendations

This is a summary of current ratings and target prices for NerdWallet and Zillow Group, as reported by MarketBeat.

	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 currently has a consensus target price of $12.83, indicating a potential upside of 29.89%. Zillow Group has a consensus target price of $52.29, indicating a potential upside of 42.16%. Given Zillow Group’s stronger consensus rating and higher probable upside, analysts clearly believe Zillow Group is more favorable than NerdWallet.

About NerdWallet

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

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.