Contrasting Uber Technologies (NYSE:UBER) and Zillow Group (NASDAQ:ZG)

Zillow Group (NASDAQ:ZGGet Free Report) and Uber Technologies (NYSE:UBERGet Free Report) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Zillow Group and Uber Technologies, as provided by MarketBeat.

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

Zillow Group presently has a consensus price target of $72.71, indicating a potential downside of 0.05%. Uber Technologies has a consensus price target of $90.51, indicating a potential upside of 48.07%. Given Uber Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Uber Technologies is more favorable than Zillow Group.

Profitability

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

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $2.16 billion 7.88 -$158.00 million ($0.57) -127.61
Uber Technologies $41.96 billion 3.07 $1.89 billion $2.01 30.41

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.

Volatility & Risk

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

Summary

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

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.

About Uber Technologies

(Get Free Report)

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.

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