Contrasting NerdWallet (NASDAQ:NRDS) & Zillow Group (NASDAQ:ZG)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zillow Group	1	13	11	0	2.40
NerdWallet	1	3	4	0	2.38

Zillow Group presently has a consensus price target of $52.29, suggesting a potential upside of 42.16%. NerdWallet has a consensus price target of $12.83, suggesting a potential upside of 29.89%. Given Zillow Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Zillow Group is more favorable than NerdWallet.

Institutional and Insider Ownership

20.3% of Zillow Group shares are held by institutional investors. Comparatively, 38.8% of NerdWallet shares are held by institutional investors. 29.9% of Zillow Group shares are held by company insiders. Comparatively, 52.7% of NerdWallet shares are held by company 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.

Profitability

This table compares Zillow Group and NerdWallet’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%
NerdWallet	7.56%	18.07%	14.41%

Volatility & Risk

Zillow Group has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zillow Group	$2.81 billion	2.94	$23.00 million	$0.22	167.18
NerdWallet	$836.60 million	0.75	$48.70 million	$0.89	11.10

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

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.