Financial Review: Forest City Enterprises (NASDAQ:FCE-A) and Zillow Group (Z)

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

Profitability

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

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Forest City Enterprises $955.86 million 6.88 $450.04 million N/A N/A
Zillow Group $964.83 million 7.96 $35.12 million ($0.24) -172.63

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

Insider and Institutional Ownership

86.1% of Zillow Group shares are owned by institutional investors. 21.7% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forest City Enterprises 0 2 1 0 2.33
Zillow Group 0 3 4 0 2.57

Forest City Enterprises presently has a consensus price target of $26.25, suggesting a potential upside of 6.45%. Zillow Group has a consensus price target of $46.64, suggesting a potential upside of 12.58%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts clearly believe Zillow Group is more favorable than Forest City Enterprises.

Summary

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

About Forest City Enterprises

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.

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 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.

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