Zillow vs Redfin Which Is Superior?

Zillow and Redfin are two prominent players in the online real estate marketplace, with both companies offering services that cater to homebuyers, sellers, and renters. While Zillow is known for its comprehensive database of property listings and robust home valuation tools, Redfin differentiates itself with its full-service brokerage model and emphasis on technology-driven customer service. Investors considering these stocks should weigh factors like market share, revenue growth, and competitive positioning to make informed decisions about their potential for long-term growth and profitability.

Zillow or Redfin?

When comparing Zillow and Redfin, 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 Zillow and Redfin.

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. Zillow has a dividend yield of -%, while Redfin has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zillow reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Redfin 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 Zillow P/E ratio at -132.50 and Redfin's P/E ratio at -7.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zillow P/B ratio is 3.78 while Redfin's P/B ratio is -18.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Zillow has seen a 5-year revenue growth of 0.24%, while Redfin's is 0.52%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zillow's ROE at -2.90% and Redfin's ROE at 1475.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $70.89 for Zillow and $9.16 for Redfin. Over the past year, Zillow's prices ranged from $34.33 to $73.35, with a yearly change of 113.66%. Redfin's prices fluctuated between $5.10 and $15.29, with a yearly change of 199.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.