Reviewing Zillow Group (Z) and PFSweb (PFSW)


Zillow Group (NASDAQ:Z) and PFSweb (NASDAQ:PFSW) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

61.5% of Zillow Group shares are owned by institutional investors. Comparatively, 62.7% of PFSweb shares are owned by institutional investors. 58.1% of Zillow Group shares are owned by insiders. Comparatively, 5.1% of PFSweb shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 1 6 4 0 2.27
PFSweb 0 0 3 0 3.00

Zillow Group currently has a consensus target price of $48.75, indicating a potential upside of 54.71%. PFSweb has a consensus target price of $12.00, indicating a potential upside of 131.21%. Given PFSweb’s stronger consensus rating and higher probable upside, analysts clearly believe PFSweb is more favorable than Zillow Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Zillow Group -7.94% 0.06% 0.05%
PFSweb 0.47% 13.65% 3.47%

Risk and Volatility

Zillow Group has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, PFSweb has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares Zillow Group and PFSweb’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $1.08 billion 5.95 -$94.42 million N/A N/A
PFSweb $326.83 million 0.31 -$3.96 million $0.20 25.95

PFSweb has lower revenue, but higher earnings than Zillow Group.

Summary

PFSweb beats Zillow Group on 7 of the 12 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 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.

About PFSweb

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, PFSweb, and Business and Retail Connect. The company offers strategic commerce consulting services, including commerce strategy, omni-channel consulting, digital opportunity audit, organizational/operational readiness, and platform evaluation/selection services; and strategy, design, and digital marketing services, such as digital strategy, design, user experience, interactive development, SEO and paid search, affiliate marketing, conversion optimization, storefront management, email marketing, and digital analytics. It also provides technology services comprising commerce platform development, managed, quality assurance, and training services; order fulfillment services, including distribution facilities and infrastructure, facility operations and management, and kitting and assembly services; and order management services, such as technology collaboration and information management services. In addition, the company offers customer care services comprising customer service application, customer assistance, quality monitoring, and customer self-help; and financial services consisting of business-to-business and direct-to-consumer financial management services. The company serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, consumer packaged goods, home furnishings and housewares, coins and collectibles, and technology products. PFSweb, Inc. was founded in 1999 and is headquartered in Allen, Texas.

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