Critical Comparison: Zillow Group (NASDAQ:ZG) versus Rightmove (OTCMKTS:RTMVY)

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

Valuation & Earnings

This table compares Rightmove 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
Rightmove	N/A	N/A	N/A	$0.86	13.66
Zillow Group	$2.58 billion	3.01	$23.00 million	$0.25	135.80

Zillow Group has higher revenue and earnings than Rightmove. Rightmove 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 Rightmove and Zillow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rightmove	N/A	N/A	N/A
Zillow Group	1.96%	2.32%	1.97%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rightmove and Zillow Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rightmove	1	2	2	0	2.20
Zillow Group	1	14	11	0	2.38

Zillow Group has a consensus price target of $53.86, indicating a potential upside of 58.64%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts plainly believe Zillow Group is more favorable than Rightmove.

Institutional and Insider Ownership

0.2% of Rightmove shares are owned by institutional investors. Comparatively, 20.3% of Zillow Group shares are owned by institutional investors. 29.9% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Zillow Group beats Rightmove on 10 of the 11 factors compared between the two stocks.

About Rightmove

Rightmove plc, together with its subsidiaries, operates online digital property advertising and information portals in the United Kingdom and internationally. The company operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and letting advertising services on its platforms. The segment also offers tenant references and rent guarantee insurance services to landlords. The New Homes segment provides property advertising services to new home developers and housing associations on its platforms. The Other segment offers overseas and commercial property advertising services; non-property advertising services that include third party advertising and data services; and mortgage services. It also provides valuation and brokerage services, as well as engages in the sale of property data. The company serves property professionals, such as estate agents, lettings agents, and new homes developers, as well as landlords, surveyors, insurers, mortgage lenders, brokers, and local authorities. Rightmove plc was founded in 2000 and is based in Milton Keynes, the United Kingdom.

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.