Head-To-Head Analysis: Quhuo (NASDAQ:QH) and Zillow Group (NASDAQ:ZG)

Quhuo (NASDAQ:QH) and Zillow Group (NASDAQ:ZG) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Quhuo and Zillow Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quhuo	0	0	0	0	N/A
Zillow Group	1	4	10	0	2.60

Zillow Group has a consensus price target of $57.14, suggesting a potential upside of 14.17%. Given Zillow Group’s higher possible upside, analysts clearly believe Zillow Group is more favorable than Quhuo.

Valuation and Earnings

This table compares Quhuo and Zillow Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quhuo	$521.47 million	0.01	$470,000.00	N/A	N/A
Zillow Group	$1.95 billion	6.08	-$158.00 million	($0.69)	-72.54

Quhuo has higher earnings, but lower revenue than Zillow Group.

Volatility and Risk

Quhuo has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quhuo	N/A	N/A	N/A
Zillow Group	-7.93%	-2.28%	-1.55%

Insider & Institutional Ownership

0.2% of Quhuo shares are owned by institutional investors. Comparatively, 20.3% of Zillow Group shares are owned by institutional investors. 33.1% of Quhuo shares are owned by insiders. Comparatively, 17.1% of Zillow Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Zillow Group beats Quhuo on 6 of the 11 factors compared between the two stocks.

About Quhuo

Quhuo Limited, through its subsidiaries, operates a workforce operational solution platform in the People's Republic of China. It provides tech-enabled and end-to-end operational solutions to on-demand consumer service businesses in industries, including food and grocery delivery, bike-sharing, ride-hailing, and housekeeping. The company also offers ride hailing solutions for ride-hailing companies; housekeeping solutions and other services for short-term rental properties and hotel cleaning services; and shared-bike maintenance solutions to address the demand for maintenance and distribution services from bike-sharing companies, as well as freight services. In addition, it engages in the development of computer software and applications; and investment holding activities. The company was founded in 2012 and is based in Beijing, the People's Republic of China.

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.