ZG vs HOOD

For growth investors, Robinhood Markets, Inc.

(HOOD) is the stronger pick with 51. 6% revenue growth year-over-year, versus 15. 5% for Zillow Group, Inc. Class A (ZG). Robinhood Markets, Inc. (HOOD) offers the better valuation at 37. 6x trailing P/E (40. 9x forward), making it the more compelling value choice. Analysts rate Zillow Group, Inc. Class A (ZG) a "Buy" — based on 49 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 trailing P/E, Robinhood Markets, Inc.

(HOOD) is the cheapest at 37. 6x versus Zillow Group, Inc. Class A at 487. 6x. On forward P/E, Zillow Group, Inc. Class A is actually cheaper at 19. 7x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Robinhood Markets, Inc.

(HOOD) delivered a total return of +121. 2%, compared to -61. 9% for Zillow Group, Inc. Class A (ZG). Over 10 years, the gap is even starker: HOOD returned +121. 2% versus ZG's +59. 6%. 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 Robinhood Markets, Inc. 's 3. 05β — meaning HOOD is approximately 131% 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 168% for Robinhood Markets, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Robinhood Markets, Inc.

(HOOD) is pulling ahead at 51. 6% versus 15. 5% for Zillow Group, Inc. Class A (ZG). On earnings-per-share growth, the picture is similar: Zillow Group, Inc. Class A grew EPS 118. 8% year-over-year, compared to 31. 4% for Robinhood Markets, Inc.. 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.

Robinhood Markets, Inc.

(HOOD) is the more profitable company, earning 42. 1% net margin versus 0. 9% for Zillow Group, Inc. Class A — meaning it keeps 42. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HOOD leads at 46. 8% versus -1. 3% for ZG. At the gross margin level — before operating expenses — HOOD leads at 83. 3%, 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. 7x forward P/E versus 40. 9x for Robinhood Markets, Inc. — 21. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ZG: 61. 1% 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. Robinhood Markets, Inc. (HOOD) carries a higher beta of 3. 05 — 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: +59. 6%, HOOD: +121. 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.

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

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.