Compass vs Zillow Which Is a Smarter Choice?

Compass and Zillow are both major players in the real estate technology industry, but they have very different business models and approaches. Compass is a traditional brokerage with a focus on agent services and premium listings, while Zillow is known for its online marketplace and innovative tools for buyers and sellers. Investors may be drawn to Compass for its personalized service and high-end market positioning, while Zillow's tech-savvy approach and vast user base offer potential for rapid growth. Both companies have seen success in the past, but their stocks represent different investment opportunities and risk profiles.

Compass or Zillow?

When comparing Compass and Zillow, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Compass and Zillow.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Compass has a dividend yield of -%, while Zillow has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, Zillow reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Compass P/E ratio at -18.08 and Zillow's P/E ratio at -143.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.35 while Zillow's P/B ratio is 4.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while Zillow's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Zillow's ROE at -2.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.02 for Compass and $78.95 for Zillow. Over the past year, Compass's prices ranged from $2.57 to $7.69, with a yearly change of 199.22%. Zillow's prices fluctuated between $38.06 and $83.67, with a yearly change of 119.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.