Zillow Group (NASDAQ:ZG – Get Free Report) and Freddie Mac (OTCMKTS:FMCC – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Valuation & Earnings
This table compares Zillow Group and Freddie Mac”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 | 8.84 | -$112.00 million | ($0.26) | -313.88 |
| Freddie Mac | $122.05 billion | 0.05 | $11.86 billion | ($0.03) | -312.00 |
Insider and Institutional Ownership
20.3% of Zillow Group shares are held by institutional investors. 17.1% of Zillow Group shares are held by company insiders. Comparatively, 0.1% of Freddie Mac shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings for Zillow Group and Freddie Mac, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 11 | 13 | 0 | 2.48 |
| Freddie Mac | 1 | 0 | 0 | 0 | 1.00 |
Zillow Group presently has a consensus target price of $85.62, suggesting a potential upside of 4.91%. Freddie Mac has a consensus target price of $4.50, suggesting a potential downside of 51.92%. Given Zillow Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Zillow Group is more favorable than Freddie Mac.
Profitability
This table compares Zillow Group and Freddie Mac’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% |
| Freddie Mac | 9.04% | -44.33% | 0.34% |
Risk & Volatility
Zillow Group has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, Freddie Mac has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.
Summary
Zillow Group beats Freddie Mac on 8 of the 14 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 Freddie Mac
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.
Receive News & Ratings for Zillow Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zillow Group and related companies with MarketBeat.com's FREE daily email newsletter.
