Zillow Group (NASDAQ: Z) and Forest City Enterprises (NASDAQ:FCE-A) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Zillow Group and Forest City Enterprises’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zillow Group $964.83 million 7.93 $35.12 million ($0.24) -171.88
Forest City Enterprises $955.86 million 6.97 $450.04 million N/A N/A

Forest City Enterprises has higher revenue, but lower earnings than Zillow Group.

Analyst Ratings

This is a summary of current recommendations and price targets for Zillow Group and Forest City Enterprises, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 0 3 4 0 2.57
Forest City Enterprises 0 2 1 0 2.33

Zillow Group presently has a consensus target price of $46.64, suggesting a potential upside of 13.07%. Forest City Enterprises has a consensus target price of $26.25, suggesting a potential upside of 5.08%. Given Zillow Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Zillow Group is more favorable than Forest City Enterprises.

Profitability

This table compares Zillow Group and Forest City Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zillow Group -4.47% -0.40% -0.33%
Forest City Enterprises N/A N/A N/A

Insider and Institutional Ownership

86.1% of Zillow Group shares are owned by institutional investors. 21.7% of Zillow Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Zillow Group beats Forest City Enterprises on 7 of the 11 factors compared between the two stocks.

About Zillow Group

Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable people find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company’s portfolio of consumer brands comprises real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, and Naked Apartments. It also owns and operates various brands comprising Mortech, dotloop, Bridge Interactive, and Retsly, as well as provides advertising services to real estate agents, and rental and mortgage professionals. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

About Forest City Enterprises

Forest City Realty Trust, Inc is a real estate investment trust. It was formerly known as Forest City Enterprises, Inc. Forest City Realty Trust, Inc was founded in 1920 and is headquartered in Cleveland, Ohio.

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