Zillow Group (NASDAQ:Z) and Broadridge Financial Solutions (NYSE:BR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
This table compares Zillow Group and Broadridge Financial Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Broadridge Financial Solutions||9.88%||46.16%||15.20%|
This is a breakdown of recent ratings and recommmendations for Zillow Group and Broadridge Financial Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Broadridge Financial Solutions||0||5||1||0||2.17|
Zillow Group currently has a consensus target price of $56.11, indicating a potential upside of 43.06%. Broadridge Financial Solutions has a consensus target price of $118.00, indicating a potential upside of 0.89%. Given Zillow Group’s stronger consensus rating and higher probable upside, analysts plainly believe Zillow Group is more favorable than Broadridge Financial Solutions.
Broadridge Financial Solutions pays an annual dividend of $1.94 per share and has a dividend yield of 1.7%. Zillow Group does not pay a dividend. Broadridge Financial Solutions pays out 46.3% of its earnings in the form of a dividend. Broadridge Financial Solutions has increased its dividend for 10 consecutive years.
Valuation & Earnings
This table compares Zillow Group and Broadridge Financial Solutions’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zillow Group||$1.08 billion||7.37||-$94.42 million||$0.15||261.47|
|Broadridge Financial Solutions||$4.33 billion||3.15||$427.90 million||$4.19||27.91|
Broadridge Financial Solutions has higher revenue and earnings than Zillow Group. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
59.9% of Zillow Group shares are held by institutional investors. Comparatively, 84.9% of Broadridge Financial Solutions shares are held by institutional investors. 21.7% of Zillow Group shares are held by insiders. Comparatively, 2.3% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Zillow Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Broadridge Financial Solutions beats Zillow Group on 10 of the 17 factors compared between the two stocks.
Zillow Group Company Profile
Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable consumers find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company's portfolio of consumer brands comprise real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and OutEast.com. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.
Broadridge Financial Solutions Company Profile
Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry worldwide. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and offers ProxyEdge, an electronic proxy delivery and voting solution. It also provides registered proxy, registrar, stock transfer, and record-keeping services to corporations; and distributes regulatory reports and corporate action/reorganization event information, and tax reporting solutions. In addition, this segment offers customer communication solutions, including processing and distributing its clients' transactional, regulatory, and marketing communications through print and digital channels. Further, it provides cloud-based marketing and customer communication tools, as well as customer and account data aggregation and reporting services; and creates sales and educational content, including seminars and a library of financial planning topics, as well as customizable advisor Websites, search engine marketing, and electronic and print newsletters. Additionally, this segment offers mutual fund and retirement, and mutual fund trade processing services. The company's Global Technology and Operations segment offers middle- and back-office securities processing solutions that include desktop productivity tools, data aggregation, performance reporting, portfolio management, order capture and execution, trade confirmation, margin, cash management, clearance and settlement, asset servicing, reference data management, reconciliation, securities financing and collateral optimization, compliance and regulatory reporting, and accounting. It also provides international securities processing and managed services. The company was founded in 1962 and is headquartered in Lake Success, New York.
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