Realogy Holdings Corp. (NYSE: RLGY) and Zillow Group (NASDAQ:Z) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitabiliy, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Dividends

Realogy Holdings Corp. pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Zillow Group does not pay a dividend. Realogy Holdings Corp. pays out 21.1% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Realogy Holdings Corp. 4.06% 9.53% 3.13%
Zillow Group -19.58% -5.65% -4.64%

Institutional & Insider Ownership

91.8% of Zillow Group shares are owned by institutional investors. 1.8% of Realogy Holdings Corp. shares are owned by insiders. Comparatively, 27.0% of Zillow Group shares are owned by 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.

Volatility and Risk

Realogy Holdings Corp. has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares Realogy Holdings Corp. and Zillow Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Realogy Holdings Corp. $5.88 billion 0.81 $760.00 million $1.71 20.46
Zillow Group $906.38 million 9.60 $48.84 million ($0.99) -47.98

Realogy Holdings Corp. has higher revenue and earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than Realogy Holdings Corp., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Realogy Holdings Corp. and Zillow Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realogy Holdings Corp. 1 2 4 0 2.43
Zillow Group 0 3 5 0 2.63

Realogy Holdings Corp. currently has a consensus price target of $34.86, suggesting a potential downside of 0.35%. Zillow Group has a consensus price target of $46.06, suggesting a potential downside of 3.03%. Given Realogy Holdings Corp.’s higher possible upside, equities research analysts clearly believe Realogy Holdings Corp. is more favorable than Zillow Group.

Summary

Realogy Holdings Corp. beats Zillow Group on 9 of the 15 factors compared between the two stocks.

Realogy Holdings Corp. Company Profile

Realogy Holdings Corp. is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company’s operating platform is supported by the Company’s portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby’s International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. On August 14, 2014, Realogy Holdings Corp, through its Realogy Group LLC wholly owned subsidiary, acquired ZipRealty Inc (ZipRealty).

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