Head-To-Head Contrast: Envestnet (ENV) vs. Zillow (ZG)

Envestnet (NYSE: ENV) and Zillow (NASDAQ:ZG) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Envestnet and Zillow’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envestnet 2.48% 10.66% 4.99%
Zillow -9.59% -0.40% -0.33%

Earnings and Valuation

This table compares Envestnet and Zillow’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envestnet $683.68 million 3.69 -$3.28 million $0.88 63.47
Zillow $1.08 billion 9.15 -$94.42 million $0.15 344.40

Envestnet has higher earnings, but lower revenue than Zillow. Envestnet is trading at a lower price-to-earnings ratio than Zillow, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Envestnet has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Zillow has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

93.3% of Envestnet shares are owned by institutional investors. Comparatively, 26.1% of Zillow shares are owned by institutional investors. 7.8% of Envestnet shares are owned by insiders. Comparatively, 20.9% of Zillow shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Envestnet and Zillow, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envestnet 0 3 5 0 2.63
Zillow 0 9 7 0 2.44

Envestnet currently has a consensus target price of $54.50, indicating a potential downside of 2.42%. Zillow has a consensus target price of $53.64, indicating a potential upside of 3.84%. Given Zillow’s higher probable upside, analysts clearly believe Zillow is more favorable than Envestnet.

Summary

Envestnet beats Zillow on 8 of the 14 factors compared between the two stocks.

About Envestnet

Envestnet, Inc., together with its subsidiaries, provides financial and wealth management software and services in the United States and internationally. It operates through Envestnet and Envestnet | Yodlee business segments. The company's product and services suites include Envestnet | Enterprise, which provides an end-to-end open architecture wealth management platform, and sells data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Tamarac that provides a portfolio of accounting, rebalancing, trading, performance reporting, and client relationship management software, primarily to high-end registered investment advisers; Envestnet | Retirement Solutions, which offers a suite of services for advisor-sold retirement plans; and Envestnet | Portfolio Management Consultants that provides research, due diligence, and consulting services to assist advisors in creating investment solutions for their clients, and patented portfolio overlay and tax optimization services. It also provides Envestnet | Yodlee data aggregation and data analytics platform, which offers cloud-based innovation for digital financial services. The company serves banks, wealth management and brokerage firms, Internet services companies, and other financial institutions. Envestnet, Inc. was founded in 1999 and is headquartered in Chicago, Illinois.

About Zillow

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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