Snap Inc. (SNAP) vs Zillow Group, Inc. (ZG)

Snap Inc. and Zillow Group, Inc. are both Internet Content & Information companies. Snap Inc. is the larger, with a market value of $10.9B against $7.1B — 1.5× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Zillow Group, Inc. trades at 144×. Zillow Group, Inc. grew revenue faster over the last twelve months: 17.7% against 12.7%. Zillow Group, Inc. has the higher net margin (1.96% vs −4.90%) and the higher return on invested capital (0.18% vs −7.22%). Across the 19 metrics below, Zillow Group, Inc. leads on 12 and Snap Inc. on 7.

Valuation

Metric SNAP ZG Internet Content & Information median
P/E n/m 144.45 11.54
P/S 1.61 2.58 0.86
P/B 5.29 1.68 1.20
Price to free cash flow 14.67 32.92 9.63
EV/EBITDA n/m 24.56 8.68
EV/Sales 1.74 2.67 1.18
Earnings yield (2.94%) 0.69% (2.42%)
Free cash flow yield 6.82% 3.04% 2.27%

Profitability

Metric SNAP ZG Internet Content & Information median
Gross margin 57.33% 72.88% 66.84%
Operating margin (5.10%) 0.43% (3.41%)
Net margin (4.90%) 1.96% (3.02%)
Free cash flow margin 11.11% 7.83% 1.75%
Return on equity (15.58%) 1.21% 0.00%
Return on assets (4.19%) 1.03% (0.36%)
Return on invested capital (7.22%) 0.18% 0.00%

Growth

Metric SNAP ZG Internet Content & Information median
Revenue growth (TTM) 12.65% 17.67% 2.65%
EPS growth (last fiscal year) 35.71% 118.75% 34.45%
Revenue growth, 5-year CAGR 18.80% 9.73% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SNAP ZG Internet Content & Information median
Debt to equity 1.83 0.11 0.01
Current ratio 2.94 1.92 1.82
Net debt to EBITDA (1.65) (3.61) (0.48)

Dividend

Metric SNAP ZG Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric SNAP ZG Internet Content & Information median
Market cap 10.89b 7.10b 318.52m

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