W vs ZG

For growth investors, Zillow Group, Inc.

Class A (ZG) is the stronger pick with 15. 5% revenue growth year-over-year, versus 5. 1% for Wayfair Inc. (W). Zillow Group, Inc. Class A (ZG) offers the better valuation at 486. 6x trailing P/E (19. 8x forward), making it the more compelling value choice. Analysts rate Wayfair Inc. (W) a "Buy" — based on 57 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.

On forward P/E, Zillow Group, Inc.

Class A is actually cheaper at 19. 8x.

Over the past 5 years, Zillow Group, Inc.

Class A (ZG) delivered a total return of -63. 1%, compared to -78. 3% for Wayfair Inc. (W). Over 10 years, the gap is even starker: W returned +67. 0% versus ZG's +61. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Zillow Group, Inc.

Class A (ZG) is the lower-risk stock at 1. 32β versus Wayfair Inc. 's 2. 85β — meaning W is approximately 116% more volatile than ZG relative to the S&P 500.

By revenue growth (latest reported year), Zillow Group, Inc.

Class A (ZG) is pulling ahead at 15. 5% versus 5. 1% for Wayfair Inc. (W). On earnings-per-share growth, the picture is similar: Zillow Group, Inc. Class A grew EPS 118. 9% year-over-year, compared to 39. 5% for Wayfair Inc.. Over a 3-year CAGR, ZG leads at 9. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Zillow Group, Inc.

Class A (ZG) is the more profitable company, earning 0. 9% net margin versus -2. 5% for Wayfair Inc. — meaning it keeps 0. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: W leads at 0. 1% versus -1. 2% for ZG. At the gross margin level — before operating expenses — ZG leads at 74. 1%, 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.

On forward earnings alone, Zillow Group, Inc.

Class A (ZG) trades at 19. 8x forward P/E versus 23. 6x for Wayfair Inc. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ZG: 60. 5% to $70. 67.

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.

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. Wayfair Inc. (W) carries a higher beta of 2. 85 — 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: +61. 3%, W: +67. 0%), 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.

These companies operate in different sectors (W (Consumer Cyclical) and ZG (Communication Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: W is a small-cap quality compounder stock; ZG is a mid-cap high-growth stock. 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.