Redfin vs Zillow Which Is a Smarter Choice?

Redfin and Zillow are two major players in the real estate industry, each offering unique services to help consumers buy or sell homes. While Redfin is known for its innovative approach to real estate transactions, Zillow is widely recognized for its comprehensive online database of listings and market data. Both companies have seen impressive growth in recent years, but their stocks have fluctuated in response to market conditions and industry trends. Investors looking to capitalize on the booming real estate market may find opportunities in both Redfin and Zillow stocks.

Redfin or Zillow?

When comparing Redfin 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 Redfin 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. Redfin 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. Redfin 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 Redfin P/E ratio at -7.84 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. Redfin P/B ratio is -18.19 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, Redfin has seen a 5-year revenue growth of 0.52%, while Zillow's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Redfin's ROE at 1475.31% and Zillow's ROE at -2.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.16 for Redfin and $70.89 for Zillow. Over the past year, Redfin's prices ranged from $5.10 to $15.29, with a yearly change of 199.80%. 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.