Financial Comparison: System1 (NYSE:SST) versus Zillow Group (NASDAQ:Z)

Zillow Group (NASDAQ:Z – Get Free Report) and System1 (NYSE:SST – Get Free Report) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares Zillow Group and System1’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zillow Group 1.96% 2.32% 1.97%
System1 -50.66% -439.90% -19.35%

Analyst Recommendations

This is a breakdown of current recommendations for Zillow Group and System1, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 1 8 5 1 2.40
System1 1 1 1 0 2.00

Zillow Group presently has a consensus price target of $57.71, suggesting a potential upside of 70.25%. System1 has a consensus price target of $6.50, suggesting a potential upside of 270.58%. Given System1’s higher probable upside, analysts clearly believe System1 is more favorable than Zillow Group.

Insider and Institutional Ownership

71.0% of Zillow Group shares are held by institutional investors. Comparatively, 87.5% of System1 shares are held by institutional investors. 25.0% of Zillow Group shares are held by company insiders. Comparatively, 10.2% of System1 shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Zillow Group has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, System1 has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Earnings and Valuation

This table compares Zillow Group and System1″s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $2.81 billion 2.71 $23.00 million $0.22 154.09
System1 $266.13 million 0.07 -$65.35 million ($11.31) -0.16

Zillow Group has higher revenue and earnings than System1. System1 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

Zillow Group beats System1 on 13 of the 15 factors compared between the two stocks.

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.

About System1

(Get Free Report)

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

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