Stamps.com (STMP) versus Zillow Group Inc Class C (Z) Critical Analysis
Stamps.com (NASDAQ: Z) and Zillow Group Inc Class C (NASDAQ:Z) are both mid-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Risk and Volatility
Stamps.com has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Zillow Group Inc Class C has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Stamps.com and Zillow Group Inc Class C, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zillow Group Inc Class C||0||5||3||0||2.38|
Stamps.com currently has a consensus target price of $256.14, suggesting a potential upside of 8.86%. Zillow Group Inc Class C has a consensus target price of $56.11, suggesting a potential upside of 19.45%. Given Zillow Group Inc Class C’s higher possible upside, analysts plainly believe Zillow Group Inc Class C is more favorable than Stamps.com.
Institutional and Insider Ownership
99.8% of Stamps.com shares are held by institutional investors. Comparatively, 58.0% of Zillow Group Inc Class C shares are held by institutional investors. 6.2% of Stamps.com shares are held by company insiders. Comparatively, 21.7% of Zillow Group Inc Class C shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Stamps.com and Zillow Group Inc Class C’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zillow Group Inc Class C||-7.54%||0.23%||0.19%|
Earnings & Valuation
This table compares Stamps.com and Zillow Group Inc Class C’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stamps.com||$468.71 million||9.12||$150.60 million||$9.90||23.77|
|Zillow Group Inc Class C||$1.08 billion||8.82||-$94.42 million||$0.15||313.13|
Stamps.com has higher earnings, but lower revenue than Zillow Group Inc Class C. Stamps.com is trading at a lower price-to-earnings ratio than Zillow Group Inc Class C, indicating that it is currently the more affordable of the two stocks.
Stamps.com beats Zillow Group Inc Class C on 9 of the 14 factors compared between the two stocks.
Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company's USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the ShipStation, ShipWorks, and ShippingEasy brands; mailing and shipping integration solutions comprising electronic postage for transactions to partners who manage the front-end process; branded insurance to insure mails or packages; and international postage solutions. In addition, the company offers customized postage solutions under the PhotoStamps and PictureItPostage brand names, which allow consumers to turn digital photos, designs, or images into USPS-approved postage; and sells NetStamps labels, DYMO Stamp labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies stores. It serves individuals, small businesses, home offices, medium-size businesses, large enterprises, e-commerce merchants, and warehouse shippers. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
About Zillow Group Inc Class C
Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable consumers find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company's portfolio of consumer brands comprise real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and OutEast.com. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.
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