Comprehensive Stock Comparison
Compare TrueCar, Inc. (TRUE) vs Zillow Group, Inc. Class A (ZG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ZG | 15.5% revenue growth vs TRUE's 10.6% |
| Quality / Margins | ZG | 0.9% net margin vs TRUE's -10.3% |
| Stability / Safety | ZG | Beta 1.11 vs TRUE's 1.75, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | TRUE | +9.0% vs ZG's -39.8% |
| Efficiency (ROA) | ZG | 0.4% ROA vs TRUE's -12.5%, ROIC -0.6% vs -97.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
TrueCar operates an online automotive marketplace that connects car buyers with certified dealers through its website and mobile apps. It generates revenue primarily from dealer subscription fees and transaction fees when users purchase vehicles through its platform — with dealer services accounting for the vast majority of its income. The company's key advantage is its extensive network of certified dealers and proprietary pricing data that provides transparency in a traditionally opaque car-buying process.
Zillow Group is a digital real estate marketplace that connects home buyers, sellers, renters, and real estate professionals through its portfolio of brands including Zillow, Trulia, and StreetEasy. It generates revenue primarily through real estate agent advertising and lead generation services (~60% of revenue), home flipping operations through its Zillow Offers segment (~30%), and mortgage origination and title services. The company's key advantage is its massive network effect—with over 200 million monthly users, it has become the dominant online destination for real estate searches, creating a powerful data moat and brand recognition.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ZG leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). TRUE leads in 2 (Valuation Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
ZG is the larger business by revenue, generating $2.6B annually — 14.3x TRUE's $181M. ZG is the more profitable business, keeping 0.9% of every revenue dollar as net income compared to TRUE's -10.3%. On growth, ZG holds the edge at +18.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TRUETrueCar, Inc. | ZGZillow Group, Inc… |
|---|---|---|
| RevenueTrailing 12 months | $181M | $2.6B |
| EBITDAEarnings before interest/tax | -$19M | -$34M |
| Net IncomeAfter-tax profit | -$19M | $23M |
| Free Cash FlowCash after capex | -$19,000 | $235M |
| Gross MarginGross profit ÷ Revenue | +79.2% | +74.1% |
| Operating MarginEBIT ÷ Revenue | -18.9% | -1.3% |
| Net MarginNet income ÷ Revenue | -10.3% | +0.9% |
| FCF MarginFCF ÷ Revenue | -0.0% | +9.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -7.2% | +18.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +187.0% | +104.5% |
Valuation Metrics
| Metric | TRUETrueCar, Inc. | ZGZillow Group, Inc… |
|---|---|---|
| Market CapShares × price | $226M | $10.8B |
| Enterprise ValueMkt cap + debt − cash | $125M | $10.1B |
| Trailing P/EPrice ÷ TTM EPS | -7.47x | 497.78x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 20.35x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | — |
| Price / SalesMarket cap ÷ Revenue | 1.29x | 4.17x |
| Price / BookPrice ÷ Book value/share | 1.94x | 2.33x |
| Price / FCFMarket cap ÷ FCF | — | 45.84x |
Profitability & Efficiency
ZG delivers a 0.5% return on equity — every $100 of shareholder capital generates $0 in annual profit, vs $-16 for TRUE. ZG carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to TRUE's 0.10x. On the Piotroski fundamental quality scale (0–9), ZG scores 7/9 vs TRUE's 4/9, reflecting strong financial health.
| Metric | TRUETrueCar, Inc. | ZGZillow Group, Inc… |
|---|---|---|
| ROE (TTM)Return on equity | -16.3% | +0.5% |
| ROA (TTM)Return on assets | -12.5% | +0.4% |
| ROICReturn on invested capital | -97.7% | -0.6% |
| ROCEReturn on capital employed | -24.6% | -0.7% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 0.10x | 0.02x |
| Net DebtTotal debt minus cash | -$101M | -$675M |
| Cash & Equiv.Liquid assets | $112M | $768M |
| Total DebtShort + long-term debt | $11M | $93M |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in TRUE five years ago would be worth $4,903 today (with dividends reinvested), compared to $2,548 for ZG. Over the past 12 months, TRUE leads with a +9.0% total return vs ZG's -39.8%. The 3-year compound annual growth rate (CAGR) favors TRUE at 2.9% vs ZG's 2.7% — a key indicator of consistent wealth creation.
| Metric | TRUETrueCar, Inc. | ZGZillow Group, Inc… |
|---|---|---|
| YTD ReturnYear-to-date | +11.9% | -31.7% |
| 1-Year ReturnPast 12 months | +9.0% | -39.8% |
| 3-Year ReturnCumulative with dividends | +9.0% | +8.3% |
| 5-Year ReturnCumulative with dividends | -51.0% | -74.5% |
| 10-Year ReturnCumulative with dividends | -53.2% | +93.5% |
| CAGR (3Y)Annualised 3-year return | +2.9% | +2.7% |
Risk & Volatility
ZG is the less volatile stock with a 1.11 beta — it tends to amplify market swings less than TRUE's 1.75 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TRUE currently trades 100.0% from its 52-week high vs ZG's 49.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TRUETrueCar, Inc. | ZGZillow Group, Inc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.75x | 1.11x |
| 52-Week HighHighest price in past year | $2.54 | $90.22 |
| 52-Week LowLowest price in past year | $1.05 | $41.90 |
| % of 52W HighCurrent price vs 52-week peak | +100.0% | +49.7% |
| RSI (14)Momentum oscillator 0–100 | 69.2 | 34.1 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 896K |
Analyst Outlook
Wall Street rates TRUE as "Hold" and ZG as "Buy". Consensus price targets imply 60.6% upside for ZG (target: $72) vs 0.4% for TRUE (target: $3).
| Metric | TRUETrueCar, Inc. | ZGZillow Group, Inc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $2.55 | $71.93 |
| # AnalystsCovering analysts | 23 | 48 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +8.9% | +6.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Jan 26 | Change |
|---|---|---|---|
| TrueCar, Inc. (TRUE) | 100 | 85.02 | -15.0% |
| Zillow Group, Inc. … (ZG) | 100 | 120.12 | +20.1% |
TrueCar, Inc. (TRUE) returned -51% over 5 years vs Zillow Group, Inc. … (ZG)'s -75%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| TrueCar, Inc. (TRUE) | $278M | $176M | -36.7% |
| Zillow Group, Inc. … (ZG) | $847M | $2.6B | +205.1% |
Zillow Group, Inc. Class A's revenue grew from $847M (2016) to $2.6B (2025) — a 13.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| TrueCar, Inc. (TRUE) | -15.0% | -17.7% | -17.6% |
| Zillow Group, Inc. … (ZG) | -26.0% | 0.9% | +103.4% |
Zillow Group, Inc. Class A's net margin went from -26% (2016) to 1% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| TrueCar, Inc. (TRUE) | -0.49 | -0.34 | +30.6% |
| Zillow Group, Inc. … (ZG) | -1.22 | 0.09 | +107.4% |
Zillow Group, Inc. Class A's EPS grew from $-1.22 (2016) to $0.09 (2025).
Chart 5Free Cash Flow — 5 Years
TrueCar, Inc. generated $-0M FCF in 2024 (-105% vs 2021). Zillow Group, Inc. Class A generated $235M FCF in 2025 (+107% vs 2021).
TRUE vs ZG: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is TRUE or ZG a better buy right now?
Zillow Group, Inc. Class A (ZG) offers the better valuation at 497.8x trailing P/E (20.4x forward), making it the more compelling value choice. Analysts rate Zillow Group, Inc. Class A (ZG) a "Buy" — based on 48 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — TRUE or ZG?
Over the past 5 years, TrueCar, Inc. (TRUE) delivered a total return of -51.0%, compared to -74.5% for Zillow Group, Inc. Class A (ZG). A $10,000 investment in TRUE five years ago would be worth approximately $5K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ZG returned +93.5% versus TRUE's -53.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — TRUE or ZG?
By beta (market sensitivity over 5 years), Zillow Group, Inc. Class A (ZG) is the lower-risk stock at 1.11β versus TrueCar, Inc.'s 1.75β — meaning TRUE is approximately 57% more volatile than ZG relative to the S&P 500. On balance sheet safety, Zillow Group, Inc. Class A (ZG) carries a lower debt/equity ratio of 2% versus 10% for TrueCar, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — TRUE or ZG?
Zillow Group, Inc. Class A (ZG) is the more profitable company, earning 0.9% net margin versus -17.7% for TrueCar, Inc. — meaning it keeps 0.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZG leads at -1.3% versus -21.2% for TRUE. At the gross margin level — before operating expenses — TRUE leads at 85.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is TRUE or ZG more undervalued right now?
Analyst consensus price targets imply the most upside for ZG: 60.6% to $71.93.
06Which pays a better dividend — TRUE or ZG?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is TRUE or ZG better for a retirement portfolio?
For long-horizon retirement investors, Zillow Group, Inc. Class A (ZG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.11)). TrueCar, Inc. (TRUE) carries a higher beta of 1.75 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ZG: +93.5%, TRUE: -53.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between TRUE and ZG?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.
- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 9%
- Gross Margin > 44%