Zillow Group (NASDAQ:Z – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Valuation & Earnings
This table compares Zillow Group and Sohu.com”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.24 billion | 8.74 | -$112.00 million | ($0.26) | -311.23 |
| Sohu.com | $598.40 million | 0.76 | -$100.27 million | $4.17 | 3.65 |
Analyst Recommendations
This is a summary of current ratings and target prices for Zillow Group and Sohu.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 0 | 9 | 4 | 1 | 2.43 |
| Sohu.com | 0 | 0 | 1 | 0 | 3.00 |
Zillow Group currently has a consensus target price of $88.2857, suggesting a potential upside of 9.10%. Sohu.com has a consensus target price of $20.00, suggesting a potential upside of 31.49%. Given Sohu.com’s stronger consensus rating and higher probable upside, analysts clearly believe Sohu.com is more favorable than Zillow Group.
Profitability
This table compares Zillow Group and Sohu.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | -2.60% | -1.26% | -1.04% |
| Sohu.com | 22.70% | -6.37% | -3.74% |
Institutional & Insider Ownership
71.0% of Zillow Group shares are owned by institutional investors. Comparatively, 33.0% of Sohu.com shares are owned by institutional investors. 23.8% of Zillow Group shares are owned by company insiders. Comparatively, 21.1% of Sohu.com shares are owned 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.
Risk and Volatility
Zillow Group has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Sohu.com has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
Summary
Zillow Group beats Sohu.com on 9 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 Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.
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