Zillow Group (NASDAQ:ZG – Get Free Report) and UWM (NYSE:UWMC – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Zillow Group and UWM’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% |
| UWM | 0.48% | -5.56% | -0.72% |
Earnings & Valuation
This table compares Zillow Group and UWM”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.24 billion | 8.79 | -$112.00 million | ($0.26) | -312.92 |
| UWM | $2.16 billion | 3.98 | $14.40 million | ($0.05) | -107.80 |
UWM has lower revenue, but higher earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Zillow Group has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500. Comparatively, UWM has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.
Insider & Institutional Ownership
20.3% of Zillow Group shares are owned by institutional investors. Comparatively, 53.6% of UWM shares are owned by institutional investors. 17.1% of Zillow Group shares are owned by insiders. Comparatively, 87.5% of UWM shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Zillow Group and UWM, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 11 | 13 | 0 | 2.48 |
| UWM | 0 | 5 | 1 | 0 | 2.17 |
Zillow Group presently has a consensus target price of $85.6190, suggesting a potential upside of 5.23%. UWM has a consensus target price of $5.5417, suggesting a potential upside of 2.81%. Given Zillow Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Zillow Group is more favorable than UWM.
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 UWM
UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.
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