Head to Head Analysis: Cass Information Systems (CASS) vs. Zillow Group Inc Class A (ZG)

Cass Information Systems (NASDAQ: CASS) and Zillow Group Inc Class A (NASDAQ:ZG) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

50.6% of Cass Information Systems shares are owned by institutional investors. Comparatively, 26.0% of Zillow Group Inc Class A shares are owned by institutional investors. 4.9% of Cass Information Systems shares are owned by company insiders. Comparatively, 20.9% of Zillow Group Inc Class A shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Cass Information Systems has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Zillow Group Inc Class A has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cass Information Systems and Zillow Group Inc Class A’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cass Information Systems $135.30 million 6.74 $25.01 million N/A N/A
Zillow Group Inc Class A $1.08 billion 11.04 -$94.42 million $0.15 409.93

Cass Information Systems has higher earnings, but lower revenue than Zillow Group Inc Class A.

Dividends

Cass Information Systems pays an annual dividend of $1.04 per share and has a dividend yield of 1.4%. Zillow Group Inc Class A does not pay a dividend. Cass Information Systems has increased its dividend for 13 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Cass Information Systems and Zillow Group Inc Class A, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cass Information Systems 0 0 0 0 N/A
Zillow Group Inc Class A 0 10 6 0 2.38

Zillow Group Inc Class A has a consensus price target of $52.79, indicating a potential downside of 14.16%. Given Zillow Group Inc Class A’s higher possible upside, analysts clearly believe Zillow Group Inc Class A is more favorable than Cass Information Systems.

Profitability

This table compares Cass Information Systems and Zillow Group Inc Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cass Information Systems 19.28% 12.81% 1.79%
Zillow Group Inc Class A -9.59% -0.40% -0.33%

Summary

Cass Information Systems beats Zillow Group Inc Class A on 8 of the 14 factors compared between the two stocks.

About Cass Information Systems

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company's services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays energy invoices, including electricity, gas, waste, and other facility related expenses; and provides telecommunications expense management solutions comprising bill processing, audit, and payment services for telephone, data line, wireless, and communication equipment expenses. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of commercial banking products and services, such as checking, savings, and time deposit accounts; commercial and commercial real estate loans; and other cash management services to privately owned businesses, and churches and church-related ministries. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and additional leased facilities in Fenton, Missouri, Santa Ana, California, and Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in St. Louis, Missouri.

About Zillow Group Inc Class A

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.

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