Zillow Group (NASDAQ:ZG) versus Rightmove (OTCMKTS:RTMVY) Financial Analysis

Zillow Group (NASDAQ:ZG) and Rightmove (OTCMKTS:RTMVY) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

20.3% of Zillow Group shares are owned by institutional investors. Comparatively, 0.2% of Rightmove shares are owned by institutional investors. 29.9% 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zillow Group	1.96%	2.32%	1.97%
Rightmove	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Zillow Group and Rightmove, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zillow Group	1	14	11	0	2.38
Rightmove	1	2	2	0	2.20

Zillow Group presently has a consensus target price of $53.86, indicating a potential upside of 58.64%. Given Zillow Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Zillow Group is more favorable than Rightmove.

Valuation and Earnings

This table compares Zillow Group and Rightmove”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zillow Group	$2.58 billion	3.01	$23.00 million	$0.25	135.80
Rightmove	N/A	N/A	N/A	$0.86	13.66

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

Summary

Zillow Group beats Rightmove on 10 of the 11 factors compared between the two stocks.

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.

About Rightmove

Rightmove plc, together with its subsidiaries, operates online digital property advertising and information portals in the United Kingdom and internationally. The company operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and letting advertising services on its platforms. The segment also offers tenant references and rent guarantee insurance services to landlords. The New Homes segment provides property advertising services to new home developers and housing associations on its platforms. The Other segment offers overseas and commercial property advertising services; non-property advertising services that include third party advertising and data services; and mortgage services. It also provides valuation and brokerage services, as well as engages in the sale of property data. The company serves property professionals, such as estate agents, lettings agents, and new homes developers, as well as landlords, surveyors, insurers, mortgage lenders, brokers, and local authorities. Rightmove plc was founded in 2000 and is based in Milton Keynes, the United Kingdom.