Zillow Group (NASDAQ:Z – Get Free Report) and Crexendo (NASDAQ:CXDO – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Analyst Ratings
This is a summary of current ratings and price targets for Zillow Group and Crexendo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zillow Group | 1 | 8 | 4 | 3 | 2.56 |
| Crexendo | 0 | 1 | 5 | 0 | 2.83 |
Zillow Group currently has a consensus target price of $90.57, indicating a potential upside of 20.79%. Crexendo has a consensus target price of $8.80, indicating a potential upside of 36.01%. Given Crexendo’s stronger consensus rating and higher probable upside, analysts plainly believe Crexendo is more favorable than Zillow Group.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zillow Group | $2.24 billion | 8.12 | -$112.00 million | ($0.26) | -288.38 |
| Crexendo | $64.48 million | 3.08 | $1.68 million | $0.10 | 64.70 |
Crexendo has lower revenue, but higher earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than Crexendo, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Zillow Group has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500. Comparatively, Crexendo has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Profitability
This table compares Zillow Group and Crexendo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zillow Group | -1.29% | -0.56% | -0.48% |
| Crexendo | 4.75% | 11.33% | 9.14% |
Institutional & Insider Ownership
71.0% of Zillow Group shares are held by institutional investors. Comparatively, 9.5% of Crexendo shares are held by institutional investors. 25.0% of Zillow Group shares are held by insiders. Comparatively, 47.2% of Crexendo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Crexendo beats Zillow Group on 10 of the 15 factors compared between the two stocks.
About Zillow Group
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 Crexendo
Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.
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