Which real estate technology platform to buy?
ZG Zillow Group, 
OPEN Opendoor Technologies, 
EXPI eXp World Holdings or 
RDFN Redfin Corporation
There is no doubt all of the above-mentioned companies are good ones and they will do well in the long term, but at this particular time, the confluence of the technical analysis signals and valuation analysis shows thatZG is a better choice if it breaks above and closes on a high volume. The setup still will be valid and must be revised if the price of ZG slips down more, but sooner or later the breakout should trigger a very safe entry.
Interestingly, even thoughZG is the largest of all four, it has a higher gross margin and its revenue growth (50%) is smaller than OPEN (81%) only for 2022. However, ZG has the smallest EV/GP ratio for both 2021 and 2022 at 10.1 and 8.2 respectively. This makes ZG a very good deal for the size and reputation it has as well as for the growth it is developing. OPEN still remains a company that has the highest growth rate, but since it just IPOed last year and except the last QE the negative pressure on the price was a lot since it was a SPAC deal. The pressure on the SPAC stocks was brutal and some of them barely survived above 10. OPEN is one of them that was picked up by the market as a worthy stock and not a bad SPAC rip-off deal. Unlike Zillow that has gained reputation and maturity in the public market, OPEN needs more time and more QEs to justify the high growth rates.
Disclaimer: I own a lot ofOPEN and some EXPI and I am going to initiate a new position on ZG in the near future. This is not trading or investment advice. Do your own due diligence. Don't risk money you cannot lose.
ZG Zillow Group, OPEN Opendoor Technologies, EXPI eXp World Holdings or RDFN Redfin CorporationThere is no doubt all of the above-mentioned companies are good ones and they will do well in the long term, but at this particular time, the confluence of the technical analysis signals and valuation analysis shows that
ZG is a better choice if it breaks above and closes on a high volume. The setup still will be valid and must be revised if the price of ZG slips down more, but sooner or later the breakout should trigger a very safe entry.Interestingly, even though
ZG is the largest of all four, it has a higher gross margin and its revenue growth (50%) is smaller than OPEN (81%) only for 2022. However, ZG has the smallest EV/GP ratio for both 2021 and 2022 at 10.1 and 8.2 respectively. This makes ZG a very good deal for the size and reputation it has as well as for the growth it is developing. OPEN still remains a company that has the highest growth rate, but since it just IPOed last year and except the last QE the negative pressure on the price was a lot since it was a SPAC deal. The pressure on the SPAC stocks was brutal and some of them barely survived above 10. OPEN is one of them that was picked up by the market as a worthy stock and not a bad SPAC rip-off deal. Unlike Zillow that has gained reputation and maturity in the public market, OPEN needs more time and more QEs to justify the high growth rates.Disclaimer: I own a lot of
OPEN and some EXPI and I am going to initiate a new position on ZG in the near future. This is not trading or investment advice. Do your own due diligence. Don't risk money you cannot lose.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.