Reviewing Zillow Group (NASDAQ:Z) and BuzzFeed (NASDAQ:BZFD)

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

Valuation and Earnings

This table compares Zillow Group and BuzzFeed”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	2.99	$23.00 million	$0.22	153.41
BuzzFeed	$185.27 million	0.23	-$57.72 million	($1.54)	-0.73

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

Risk and Volatility

Zillow Group has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 3.78, suggesting that its share price is 278% more volatile than the S&P 500.

Profitability

This table compares Zillow Group and BuzzFeed’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%
BuzzFeed	-35.83%	-113.86%	-34.00%

Analyst Ratings

This is a summary of recent recommendations and price targets for Zillow Group and BuzzFeed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zillow Group	1	8	5	2	2.50
BuzzFeed	1	1	0	0	1.50

Zillow Group presently has a consensus target price of $68.50, suggesting a potential upside of 102.96%. BuzzFeed has a consensus target price of $1.00, suggesting a potential downside of 11.50%. Given Zillow Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Zillow Group is more favorable than BuzzFeed.

Institutional and Insider Ownership

71.0% of Zillow Group shares are held by institutional investors. Comparatively, 37.6% of BuzzFeed shares are held by institutional investors. 23.8% of Zillow Group shares are held by company insiders. Comparatively, 15.6% of BuzzFeed shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Zillow Group beats BuzzFeed on 14 of the 15 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 BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.