Which company offers more value? Zillow Group, Inc. (ZG) or Tapestry, Inc. (TPR)

The shares of Zillow Group, Inc. (NASDAQ:ZG) and Tapestry, Inc. (NYSE:TPR) were among the active stocks of the last trading sessions. Zillow Group, Inc. (NASDAQ:ZG) declined to -1.17% closing at the price of $29.56 whereas the shares of Tapestry, Inc. (NYSE:TPR) soared 1.41% with the increase of 0.6 points closing at the price of $43.03. Zillow Group, Inc. has currently decrease -45.51% in its stock over the period of 6-months while its rival Tapestry, Inc. subtracted -6.54% in the previous 6-months.

Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.

Returns and Profitability

Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.

The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Zillow Group, Inc. (NASDAQ:ZG) is -3.1% while the ROI of Tapestry, Inc. (NYSE:TPR) is 13.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ZG’s EBITDA Margin is 98.03 whereas TPR’s is 10.75.

Both the profitability ratios suggest a mixed sentiment for Zillow Group, Inc. (NASDAQ:ZG) and Tapestry, Inc. (NYSE:TPR).

EPS & Surprise Factor

Zillow Group, Inc. (NASDAQ:ZG) reported $0.18/share EPS for the previous quarter where analysts were predicting an EPS to be $0.17/share Thus beating the analyst Estimates with a Surprise Factor of 5.9 Percent. While, Tapestry, Inc. (NYSE:TPR) reported EPS of $0.48/share in the last quarter. The analysts projected EPS of $0.45/share depicting a Surprise of 6.7 Percent.

Taking a look at Earnings per Share, Tapestry, Inc. tends to be beating the analyst estimates more than Zillow Group, Inc.. so TPR is more profitable than ZG.

Technical Analysis of Zillow Group, Inc. & Tapestry, Inc.

Moving average convergence divergence (MACD) shows that Zillow Group, Inc. (NASDAQ:ZG) is on a PRICE RELATIVITY trend While Tapestry, Inc. (NYSE:TPR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Zillow Group, Inc. was in BEARISH territory and Tapestry, Inc. was in BULLISH territory.

ZG’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TPR’s candle is BULLISH with HIGH.

EPS Growth Rate: ZG’s 24.15% versus TPR’s 9.82%

Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Zillow Group, Inc. (NASDAQ:ZG) is predicted at 24.15% while Tapestry, Inc. (NYSE:TPR) stands at 9.82%. These numbers suggest that ZG is more suitable investment in terms of EPS growth rate.

Financial Risk and Liquidity Concerns

The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of ZG stands at 8.2 while TPR is at 2.6 whereas the debt ratio of the prior is 0.14 while the debt ratio of the later is 0.49.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.7 for ZG and 2.1 for TPR which means ZG has Hold rating whereas TPR has Hold rating.

Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for ZG is $51.71 which is 42.84% of its current price while TPR has price target of 54.5 which is 21.05% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

ZG currently has price to earning P/E ratio of 0 whereas TPR has 17.66 while the forward P/E ratio for the prior stands at 33.82 and for the later it depicts the value of 13.85.

The price to Book P/B for ZG is 2.01, Price to Sale is at 5.08 and for TPR these ratios stand at 3.81 and 2.09.