Critical Analysis: Zillow Group (NASDAQ:ZG) vs. Uber Technologies (NYSE:UBER)

Uber Technologies (NYSE:UBER) and Zillow Group (NASDAQ:ZG) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Uber Technologies and Zillow Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	0	6	32	1	2.87
Zillow Group	1	5	12	0	2.61

Uber Technologies presently has a consensus price target of $90.51, indicating a potential upside of 46.30%. Zillow Group has a consensus price target of $72.71, indicating a potential downside of 0.92%. Given Uber Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Uber Technologies is more favorable than Zillow Group.

Volatility and Risk

Uber Technologies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Insider & Institutional Ownership

80.2% of Uber Technologies shares are held by institutional investors. Comparatively, 20.3% of Zillow Group shares are held by institutional investors. 3.8% of Uber Technologies shares are held by insiders. Comparatively, 17.1% of Zillow Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$41.96 billion	3.11	$1.89 billion	$2.01	30.78
Zillow Group	$2.16 billion	7.95	-$158.00 million	($0.57)	-128.74

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	10.49%	33.46%	10.55%
Zillow Group	-6.17%	-2.33%	-1.63%

Summary

Uber Technologies beats Zillow Group on 12 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. 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.

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.