Zillow Group (NASDAQ:Z – Get Free Report) and Bridgeline Digital (NASDAQ:BLIN – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
Profitability
This table compares Zillow Group and Bridgeline Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | -1.29% | -0.56% | -0.48% |
| Bridgeline Digital | -16.81% | -25.79% | -16.08% |
Volatility and Risk
Zillow Group has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Bridgeline Digital has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 8 | 4 | 3 | 2.56 |
| Bridgeline Digital | 2 | 0 | 1 | 0 | 1.67 |
Zillow Group presently has a consensus price target of $91.14, suggesting a potential upside of 26.06%. Bridgeline Digital has a consensus price target of $4.62, suggesting a potential upside of 269.60%. Given Bridgeline Digital’s higher probable upside, analysts clearly believe Bridgeline Digital is more favorable than Zillow Group.
Insider and Institutional Ownership
71.0% of Zillow Group shares are held by institutional investors. Comparatively, 15.1% of Bridgeline Digital shares are held by institutional investors. 25.0% of Zillow Group shares are held by insiders. Comparatively, 23.5% of Bridgeline Digital 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.
Earnings and Valuation
This table compares Zillow Group and Bridgeline Digital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.48 billion | 7.05 | -$112.00 million | ($0.14) | -516.43 |
| Bridgeline Digital | $15.38 million | 0.98 | -$1.96 million | ($0.27) | -4.63 |
Bridgeline Digital has lower revenue, but higher earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than Bridgeline Digital, indicating that it is currently the more affordable of the two stocks.
Summary
Zillow Group beats Bridgeline Digital on 12 of the 15 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 Bridgeline Digital
Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO. It also provides Bridgeline TruPresence, a web content management and eCommerce platform to support the needs of multi-unit organizations and franchises; Bridgeline Unbound, a technology suite that empower marketers to easily manage their digital experiences and create personalized customer journeys; and OrchestraCMS, a digital experience platform that enables development of custom solutions, third-party integrations, and delivery of digital transformation initiatives on the Salesforce platform. In addition, the company offers digital engagement services comprising digital strategy, web design and web development, usability engineering, information architecture, and SEO, as well as hosting services. It serves vertical markets, such as industrial distributors and wholesalers, franchises and enterprises, manufacturers, eCommerce retailers, health services and life sciences, technology, credit unions and banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was incorporated in 2000 and is based in Woburn, Massachusetts.
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