Zillow Group (NASDAQ:ZG) vs. Paymentus (NYSE:PAY) Head-To-Head Comparison

Paymentus (NYSE:PAY) and Zillow Group (NASDAQ:ZG) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Paymentus and Zillow Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	5	2	1	2.50
Zillow Group	1	9	13	0	2.52

Paymentus currently has a consensus target price of $30.00, indicating a potential downside of 10.39%. Zillow Group has a consensus target price of $79.67, indicating a potential upside of 20.45%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts plainly believe Zillow Group is more favorable than Paymentus.

Profitability

This table compares Paymentus and Zillow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.19%	10.84%	9.24%
Zillow Group	-5.01%	-2.12%	-1.56%

Volatility & Risk

Paymentus has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$871.75 million	4.80	$22.32 million	$0.34	98.46
Zillow Group	$2.24 billion	7.17	-$112.00 million	($0.47)	-140.72

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

Institutional & Insider Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 20.3% of Zillow Group shares are held by institutional investors. 87.8% of Paymentus shares are held by insiders. Comparatively, 17.1% of Zillow Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Paymentus beats Zillow Group on 9 of the 15 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

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.