Critical Review: Forest City Enterprises (FCE-A) versus Zillow Group (ZG)

Zillow Group (NASDAQ: ZG) and Forest City Enterprises (NASDAQ:FCE-A) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Zillow Group and Forest City Enterprises, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 0 7 9 0 2.56
Forest City Enterprises 0 2 1 0 2.33

Zillow Group presently has a consensus price target of $45.00, suggesting a potential upside of 9.70%. Forest City Enterprises has a consensus price target of $26.25, suggesting a potential upside of 5.63%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts clearly believe Zillow Group is more favorable than Forest City Enterprises.

Profitability

This table compares Zillow Group and Forest City Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zillow Group -4.47% -0.40% -0.33%
Forest City Enterprises N/A N/A N/A

Insider and Institutional Ownership

26.1% of Zillow Group shares are held by institutional investors. 20.9% of Zillow Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Zillow Group and Forest City Enterprises’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zillow Group $964.83 million 7.88 $35.12 million ($0.24) -170.92
Forest City Enterprises $955.86 million 6.94 $450.04 million N/A N/A

Forest City Enterprises has higher revenue, but lower earnings than Zillow Group.

Summary

Zillow Group beats Forest City Enterprises on 7 of the 11 factors compared between the two stocks.

Zillow Group Company Profile

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 people 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 comprises real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, and Naked Apartments. It also owns and operates various brands comprising Mortech, dotloop, Bridge Interactive, and Retsly, as well as provides advertising services to real estate agents, and rental and mortgage professionals. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

Forest City Enterprises Company Profile

Forest City Realty Trust, Inc is a real estate investment trust. It was formerly known as Forest City Enterprises, Inc. Forest City Realty Trust, Inc was founded in 1920 and is headquartered in Cleveland, Ohio.

Receive News & Ratings for Zillow Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zillow Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply