Rakuten (OTCMKTS:RKUNY – Get Free Report) and Zillow Group (NASDAQ:Z – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Valuation & Earnings
This table compares Rakuten and Zillow Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rakuten | $16.70 billion | 0.64 | -$1.19 billion | ($0.37) | -13.35 |
| Zillow Group | $2.58 billion | 3.00 | $23.00 million | $0.25 | 135.60 |
Profitability
This table compares Rakuten and Zillow Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rakuten | -4.83% | -10.02% | -0.44% |
| Zillow Group | 2.27% | 1.41% | 1.22% |
Risk and Volatility
Rakuten has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Rakuten and Zillow Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rakuten | 0 | 1 | 0 | 1 | 3.00 |
| Zillow Group | 1 | 6 | 6 | 3 | 2.69 |
Zillow Group has a consensus price target of $72.38, indicating a potential upside of 113.50%. Given Zillow Group’s higher probable upside, analysts plainly believe Zillow Group is more favorable than Rakuten.
Insider & Institutional Ownership
71.0% of Zillow Group shares are held by institutional investors. 25.0% of Zillow Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Zillow Group beats Rakuten on 13 of the 15 factors compared between the two stocks.
About Rakuten
Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.
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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