Reviewing Zillow Group (NASDAQ:Z) & Uber Technologies (NYSE:UBER)

Zillow Group (NASDAQ:ZGet Rating) and Uber Technologies (NYSE:UBERGet Rating) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Zillow Group has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Zillow Group -5.04% -7.61% -4.30%
Uber Technologies -29.51% 9.68% 3.54%

Earnings & Valuation

This table compares Zillow Group and Uber Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $8.15 billion 0.95 -$527.78 million ($2.22) -14.14
Uber Technologies $17.46 billion 2.42 -$496.00 million ($3.30) -6.52

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Zillow Group and Uber Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 0 1 2 0 2.67
Uber Technologies 0 0 30 0 3.00

Zillow Group presently has a consensus price target of $81.33, suggesting a potential upside of 159.19%. Uber Technologies has a consensus price target of $56.43, suggesting a potential upside of 162.48%. Given Uber Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Uber Technologies is more favorable than Zillow Group.

Institutional and Insider Ownership

74.8% of Zillow Group shares are owned by institutional investors. Comparatively, 72.6% of Uber Technologies shares are owned by institutional investors. 14.6% of Zillow Group shares are owned by company insiders. Comparatively, 3.9% of Uber Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Uber Technologies beats Zillow Group on 9 of the 14 factors compared between the two stocks.

About Zillow Group (Get Rating)

Zillow Group, Inc., a digital real estate company, operates real estate brands on mobile applications and Websites in the United States. The company operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The Homes segment is involved in resale of homes; and title and escrow services to home buyers and sellers, including title search procedures for title insurance policies, escrow, and other closing services. The IMT segment offers premier agent, rentals, and new construction marketplaces, as well as dotloop, display, and other advertising, as well as business software solutions. The Mortgage segment provides home loans; and marketing products including custom quote and connect services. Its portfolio of brands includes Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

About Uber Technologies (Get Rating)

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It connects consumers with independent providers of ride services for ridesharing services; and connects riders and other consumers with restaurants, grocers, and other stores with delivery service providers for meal preparation, grocery, and other delivery services. The company operates through three segments: Mobility, Delivery, and Freight. The Mobility segment provides products that connect consumers with mobility drivers who provide rides in a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. It also offers financial partnerships, transit, and vehicle solutions offerings. The Delivery segment allows consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered; and offers grocery, alcohol, and convenience store delivery, as well as select other goods. The Freight segment connects carriers with shippers on the company's platform and enable carriers upfront, transparent pricing, and the ability to book a shipment, as well as transportation management and other logistics services offerings. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

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