Zillow Group (NASDAQ:ZG) and ZoomInfo Technologies (NASDAQ:ZI) Critical Survey

ZoomInfo Technologies (NASDAQ:ZI) and Zillow Group (NASDAQ:ZG) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

This table compares ZoomInfo Technologies and Zillow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	0.74%	12.05%	3.46%
Zillow Group	1.96%	2.32%	1.97%

Valuation and Earnings

This table compares ZoomInfo Technologies and Zillow Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.21 billion	1.18	$107.30 million	$0.12	35.00
Zillow Group	$2.58 billion	3.19	$23.00 million	$0.22	166.41

ZoomInfo Technologies has higher earnings, but lower revenue than Zillow Group. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.5% of ZoomInfo Technologies shares are held by institutional investors. Comparatively, 20.3% of Zillow Group shares are held by institutional investors. 9.0% of ZoomInfo Technologies shares are held by insiders. Comparatively, 29.9% of Zillow Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

ZoomInfo Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for ZoomInfo Technologies and Zillow Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	2	2	1	0	1.80
Zillow Group	1	13	11	0	2.40

ZoomInfo Technologies presently has a consensus target price of $5.50, indicating a potential upside of 30.95%. Zillow Group has a consensus target price of $53.14, indicating a potential upside of 45.14%. Given Zillow Group’s stronger consensus rating and higher probable upside, analysts clearly believe Zillow Group is more favorable than ZoomInfo Technologies.

Summary

Zillow Group beats ZoomInfo Technologies on 10 of the 14 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.

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.