ITEX (OTCMKTS:ITEX) and Zillow Group (NASDAQ:ZG) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Earnings & Valuation
This table compares ITEX and Zillow Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ITEX||$11.11 million||0.75||-$1.51 million||N/A||N/A|
|Zillow Group||$1.08 billion||7.65||-$94.42 million||$0.15||271.67|
ITEX has higher earnings, but lower revenue than Zillow Group.
ITEX pays an annual dividend of $0.20 per share and has a dividend yield of 5.0%. Zillow Group does not pay a dividend.
This table compares ITEX and Zillow Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
ITEX has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for ITEX and Zillow Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zillow Group has a consensus target price of $48.76, indicating a potential upside of 19.67%. Given Zillow Group’s higher probable upside, analysts clearly believe Zillow Group is more favorable than ITEX.
Institutional & Insider Ownership
25.7% of Zillow Group shares are held by institutional investors. 32.0% of ITEX shares are held by company insiders. Comparatively, 20.9% of Zillow Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Zillow Group beats ITEX on 8 of the 12 factors compared between the two stocks.
ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company's marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.
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 consumers 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 comprise real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and OutEast.com. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.
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