Reviewing Zillow Group (NASDAQ:Z) & BuzzFeed (NASDAQ:BZFD)

BuzzFeed (NASDAQ:BZFDGet Free Report) and Zillow Group (NASDAQ:ZGet Free Report) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Insider and Institutional Ownership

37.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 71.0% of Zillow Group shares are owned by institutional investors. 15.6% of BuzzFeed shares are owned by company insiders. Comparatively, 25.0% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

BuzzFeed has a beta of 3.78, suggesting that its stock price is 278% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Valuation & Earnings

This table compares BuzzFeed and Zillow Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BuzzFeed $185.27 million 0.24 -$57.72 million ($1.54) -0.75
Zillow Group $2.58 billion 2.98 $23.00 million $0.25 134.44

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BuzzFeed 1 1 0 0 1.50
Zillow Group 1 8 5 2 2.50

BuzzFeed presently has a consensus target price of $1.00, suggesting a potential downside of 13.79%. Zillow Group has a consensus target price of $68.50, suggesting a potential upside of 103.81%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts clearly believe Zillow Group is more favorable than BuzzFeed.

Profitability

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

Net Margins Return on Equity Return on Assets
BuzzFeed -35.83% -112.22% -32.28%
Zillow Group 1.96% 2.32% 1.97%

Summary

Zillow Group beats BuzzFeed on 14 of the 15 factors compared between the two stocks.

About BuzzFeed

(Get Free Report)

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.

About Zillow Group

(Get Free Report)

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.

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