Head-To-Head Analysis: Zillow Group (NASDAQ:Z) vs. MediaAlpha (NYSE:MAX)

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

Analyst Ratings

This is a breakdown of current ratings for Zillow Group and MediaAlpha, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zillow Group	1	8	5	1	2.40
MediaAlpha	0	5	3	1	2.56

Zillow Group currently has a consensus price target of $57.71, suggesting a potential upside of 86.42%. MediaAlpha has a consensus price target of $14.71, suggesting a potential upside of 0.37%. Given Zillow Group’s higher probable upside, equities analysts clearly believe Zillow Group is more favorable than MediaAlpha.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zillow Group	$2.58 billion	2.70	$23.00 million	$0.22	140.73
MediaAlpha	$1.11 billion	0.81	$25.62 million	$1.82	8.05

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

Profitability

This table compares Zillow Group and MediaAlpha’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%
MediaAlpha	8.35%	-994.23%	29.14%

Volatility and Risk

Zillow Group has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

71.0% of Zillow Group shares are held by institutional investors. Comparatively, 64.4% of MediaAlpha shares are held by institutional investors. 25.0% of Zillow Group shares are held by company insiders. Comparatively, 14.6% of MediaAlpha shares are held by company 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 MediaAlpha on 9 of the 14 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 MediaAlpha

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.