Corelogic (CLGX) vs. Zynga (ZNGA) Critical Contrast

Corelogic (NYSE:CLGX) and Zynga (NASDAQ:ZNGA) are both mid-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Earnings & Valuation

This table compares Corelogic and Zynga’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corelogic $1.79 billion 1.78 $121.86 million $2.36 16.72
Zynga $907.21 million 6.10 $15.46 million $0.02 299.00

Corelogic has higher revenue and earnings than Zynga. Corelogic is trading at a lower price-to-earnings ratio than Zynga, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Corelogic has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Zynga has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Corelogic and Zynga, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corelogic 0 6 4 0 2.40
Zynga 1 3 10 0 2.64

Corelogic presently has a consensus target price of $45.00, suggesting a potential upside of 14.04%. Zynga has a consensus target price of $6.35, suggesting a potential upside of 6.19%. Given Corelogic’s higher possible upside, equities analysts plainly believe Corelogic is more favorable than Zynga.

Profitability

This table compares Corelogic and Zynga’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corelogic 5.41% 18.13% 4.41%
Zynga -12.34% -7.09% -5.27%

Institutional & Insider Ownership

90.8% of Corelogic shares are held by institutional investors. Comparatively, 78.3% of Zynga shares are held by institutional investors. 1.1% of Corelogic shares are held by insiders. Comparatively, 9.4% of Zynga shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Corelogic beats Zynga on 9 of the 14 factors compared between the two stocks.

About Corelogic

CoreLogic, Inc., together with its subsidiaries, provides property information, insight, analytics, and data-enabled solutions in North America, Western Europe, and the Asia Pacific. The company operates in two segments, Property Intelligence & Risk Management Solutions (PIRM) and Underwriting & Workflow Solutions (UWS). The PIRM segment combines property information, mortgage information, and consumer information to deliver housing market and property-level insights, predictive analytics, and risk management capabilities. It also offers proprietary technology and software platforms to access, automate, or track the information and assist its clients with decision-making and compliance tools in the real estate industry, insurance industry, and the single and multifamily industry. This segment primarily serves commercial banks, mortgage lenders and brokers, investment banks, fixed-income investors, real estate agents, MLS companies, property and casualty insurance companies, title insurance companies, government agencies, and government-sponsored enterprises. The UWS segment combines property, mortgage, and consumer information to provide comprehensive mortgage origination and monitoring solutions, including underwriting-related solutions, and data-enabled valuations and appraisals. This segment also provides proprietary technology and software platforms to access, automate, or track the information and assist its clients with vetting and onboarding prospects, and meeting compliance regulations, as well as understanding, diagnosing, and monitoring property values. It primarily serves mortgage lenders and servicers, mortgage brokers, credit unions, commercial banks, fixed-income investors, government agencies, and property and casualty insurance companies. The company was formerly known as The First American Corporation and changed its name to CoreLogic, Inc. in June 2010. CoreLogic, Inc. was incorporated in 1894 and is headquartered in Irvine, California.

About Zynga

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The company's games are played on mobile platforms, such as Apple iOS and Google's Android operating systems, as well as on social networking sites, such as Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual items and sponsorships to advertising agencies and brokers; and licenses its own brands. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.

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