Rakuten (OTCMKTS:RKUNY – Get Free Report) and Zillow Group (NASDAQ:Z – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Profitability
This table compares Rakuten and Zillow Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rakuten | -4.83% | -10.02% | -0.44% |
| Zillow Group | 2.27% | 1.41% | 1.22% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Rakuten and Zillow Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rakuten | 0 | 1 | 0 | 1 | 3.00 |
| Zillow Group | 1 | 6 | 6 | 3 | 2.69 |
Valuation and Earnings
This table compares Rakuten and Zillow Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rakuten | $16.70 billion | 0.64 | -$1.19 billion | ($0.37) | -13.35 |
| Zillow Group | $2.58 billion | 3.00 | $23.00 million | $0.25 | 135.60 |
Zillow Group has lower revenue, but higher earnings than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
71.0% of Zillow Group shares are owned by institutional investors. 25.0% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Rakuten has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.
Summary
Zillow Group beats Rakuten on 13 of the 15 factors compared between the two stocks.
About Rakuten
Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.
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.
Receive News & Ratings for Rakuten Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rakuten and related companies with MarketBeat.com's FREE daily email newsletter.
