Financial Analysis: Zillow Group (NASDAQ:ZG) and Viad (NYSE:VVI)

Viad (NYSE:VVIGet Free Report) and Zillow Group (NASDAQ:ZGGet Free Report) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Viad 0.61% 12.04% 1.29%
Zillow Group -7.93% -2.28% -1.55%

Insider & Institutional Ownership

89.9% of Viad shares are owned by institutional investors. Comparatively, 20.3% of Zillow Group shares are owned by institutional investors. 4.1% of Viad shares are owned by insiders. Comparatively, 17.1% of Zillow Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Viad and Zillow Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viad 0 0 3 0 3.00
Zillow Group 1 5 10 0 2.56

Viad currently has a consensus target price of $44.33, suggesting a potential upside of 29.63%. Zillow Group has a consensus target price of $57.40, suggesting a potential upside of 43.25%. Given Zillow Group’s higher probable upside, analysts clearly believe Zillow Group is more favorable than Viad.

Risk and Volatility

Viad has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Earnings & Valuation

This table compares Viad and Zillow Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viad $1.24 billion 0.58 $16.02 million ($0.38) -90.00
Zillow Group $1.95 billion 4.81 -$158.00 million ($0.69) -58.07

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

Summary

Viad beats Zillow Group on 8 of the 14 factors compared between the two stocks.

About Viad

(Get Free Report)

Viad Corp provides hospitality, leisure activities, experiential marketing, and live events in the United States, Canada, Europe, the Middle East, and Africa. It operates in three segments: Pursuit, Spiro, and GES Exhibitions. The Pursuit segment offers recreational attractions, hotels and lodges, food and beverage, retail, sightseeing, and ground transportation services. This segment consists of Banff Jasper Collection, the Alaska Collection, the Glacier Park Collection, FlyOver, and Sky Lagoon. The Spiro segment operates as an experiential marketing agency that partners with brands around the world to manage and elevate their global experiential marketing activities. The GES Exhibition segment engages as an exhibition services company that partners with exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows. It serves event organizers and corporate brand marketers; and tour operators, tour wholesalers, destination management companies, and retail travel agencies. Viad Corp was founded in 1926 and is headquartered in Scottsdale, Arizona.

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.

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