OpenDoor vs Zillow Which Performs Better?

OpenDoor and Zillow are two prominent players in the real estate industry, revolutionizing the way people buy and sell homes. OpenDoor focuses on streamlining the home-selling process by offering instant cash offers to homeowners, while Zillow provides a platform for individuals to list and search for properties. Both companies have seen significant growth in recent years, but their stocks have fluctuated due to market conditions and competition. Investors are closely monitoring these two innovative companies to see which will emerge as the leader in the real estate tech sector.

OpenDoor or Zillow?

When comparing OpenDoor 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 OpenDoor 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. OpenDoor 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. OpenDoor reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 OpenDoor P/E ratio at -81.44 and Zillow's P/E ratio at -132.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. OpenDoor P/B ratio is 3.99 while Zillow's P/B ratio is 3.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, OpenDoor has seen a 5-year revenue growth of -0.49%, while Zillow's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OpenDoor's ROE at -4.50% and Zillow's ROE at -2.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥611.00 for OpenDoor and $70.89 for Zillow. Over the past year, OpenDoor's prices ranged from ¥554.00 to ¥1010.00, with a yearly change of 82.31%. Zillow's prices fluctuated between $34.33 and $73.35, with a yearly change of 113.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.