Critical Survey: Zillow Group (NASDAQ:ZG) versus Onity Group (NYSE:ONIT)

Zillow Group (NASDAQ:ZGGet Free Report) and Onity Group (NYSE:ONITGet Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Risk & Volatility

Zillow Group has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 1 9 12 0 2.50
Onity Group 0 0 3 0 3.00

Zillow Group presently has a consensus target price of $81.80, indicating a potential upside of 22.79%. Onity Group has a consensus target price of $48.33, indicating a potential upside of 28.53%. Given Onity Group’s stronger consensus rating and higher probable upside, analysts clearly believe Onity Group is more favorable than Zillow Group.

Insider and Institutional Ownership

20.3% of Zillow Group shares are held by institutional investors. Comparatively, 70.2% of Onity Group shares are held by institutional investors. 17.1% of Zillow Group shares are held by company insiders. Comparatively, 8.8% of Onity Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $2.24 billion 7.19 -$112.00 million ($0.34) -195.94
Onity Group $976.00 million 0.31 $33.90 million $2.85 13.19

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

Profitability

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

Net Margins Return on Equity Return on Assets
Zillow Group -3.51% -1.62% -1.25%
Onity Group 2.62% 22.67% 0.70%

Summary

Onity Group beats Zillow Group on 9 of the 14 factors compared between the two stocks.

About Zillow Group

(Get Free Report)

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 Onity Group

(Get Free Report)

Onity Group Inc., a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. It operates through, Servicing and Originations segments. The company provides commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing, and asset management services for to owners of mortgage loans and foreclosed real estate, as well as residential mortgage loan servicing, such as forward and reverse conventional, government-insured, and non-agency loans, including the reverse mortgage loans classified as loans. It also originates and purchases conventional and government-insured residential forward and reverse mortgage loans through its correspondent lending arrangements, broker relationships, and retail channels. It serves primarily under the PHH Mortgage and Liberty Reverse Mortgage brands. The company was formerly known as Ocwen Financial Corporation and changed its name to Onity Group Inc. in June 2024. Onity Group Inc. was founded in 1988 and is headquartered in West Palm Beach, Florida.

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