Teads (NASDAQ:TEAD – Get Free Report) and Zillow Group (NASDAQ:Z – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
60.4% of Teads shares are owned by institutional investors. Comparatively, 71.0% of Zillow Group shares are owned by institutional investors. 12.0% of Teads shares are owned by company insiders. Comparatively, 25.0% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Teads and Zillow Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teads | -43.32% | -49.37% | -6.14% |
| Zillow Group | 1.96% | 2.32% | 1.97% |
Valuation and Earnings
This table compares Teads 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 | |
| Teads | $1.30 billion | 0.02 | -$517.07 million | ($5.53) | -0.06 |
| Zillow Group | $2.58 billion | 2.70 | $23.00 million | $0.22 | 140.86 |
Zillow Group has higher revenue and earnings than Teads. Teads is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Teads and Zillow Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teads | 1 | 2 | 1 | 0 | 2.00 |
| Zillow Group | 1 | 8 | 5 | 1 | 2.40 |
Teads presently has a consensus price target of $1.00, suggesting a potential upside of 228.41%. Zillow Group has a consensus price target of $57.71, suggesting a potential upside of 86.24%. Given Teads’ higher probable upside, analysts plainly believe Teads is more favorable than Zillow Group.
Volatility & Risk
Teads has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.
Summary
Zillow Group beats Teads on 13 of the 14 factors compared between the two stocks.
About Teads
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
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.
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