Zillow Group (NASDAQ: Z) and Realogy Holdings Corp. (NYSE:RLGY) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitabiliy, dividends, valuation, institutional ownership and earnings.
Risk and Volatility
Zillow Group has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Realogy Holdings Corp. has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Zillow Group and Realogy Holdings Corp., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 0 | 2 | 5 | 0 | 2.71 |
| Realogy Holdings Corp. | 1 | 2 | 4 | 0 | 2.43 |
Zillow Group currently has a consensus target price of $45.50, suggesting a potential upside of 0.57%. Realogy Holdings Corp. has a consensus target price of $34.29, suggesting a potential downside of 0.65%. Given Zillow Group’s stronger consensus rating and higher probable upside, analysts clearly believe Zillow Group is more favorable than Realogy Holdings Corp..
Earnings and Valuation
This table compares Zillow Group and Realogy Holdings Corp.’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $906.38 million | 9.14 | $48.84 million | ($0.99) | -45.70 |
| Realogy Holdings Corp. | $5.88 billion | 0.81 | $760.00 million | $1.71 | 20.18 |
Realogy Holdings Corp. has higher revenue and earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than Realogy Holdings Corp., indicating that it is currently the more affordable of the two stocks.
Dividends
Realogy Holdings Corp. pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Zillow Group does not pay a dividend. Realogy Holdings Corp. pays out 21.1% of its earnings in the form of a dividend.
Insider and Institutional Ownership
91.8% of Zillow Group shares are owned by institutional investors. 27.0% of Zillow Group shares are owned by company insiders. Comparatively, 1.8% of Realogy Holdings Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Zillow Group and Realogy Holdings Corp.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | -19.58% | -5.65% | -4.64% |
| Realogy Holdings Corp. | 4.06% | 9.52% | 3.13% |
Summary
Realogy Holdings Corp. beats Zillow Group on 8 of the 15 factors compared between the two stocks.
About Realogy Holdings Corp.
Realogy Holdings Corp. is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company’s operating platform is supported by the Company’s portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby’s International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. On August 14, 2014, Realogy Holdings Corp, through its Realogy Group LLC wholly owned subsidiary, acquired ZipRealty Inc (ZipRealty).
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