Trulia or Zillow?

With Trulia (TRLA), the online real estate operator, going public today, let’s look at its main competitor, Zillow (Z) to see which is a better investment opportunity. 

Side by Side Comparison:

 

Zillow

Trulia

Symbol

Z

TRLA

Price

$46.17

$24

Market Cap

1.35 billion

633 million

Quarterly Total Revenue

27.765 million

16.825 million

Yearly Total Revenue (Trailing 12 months)

89.546 million

51.237 million

Total Revenue Growth (1)

75%

81%

Marketplace Revenue (2)

$19.623 million

$11.049 million

Display Revenue (3)

$8.142 million

$5.776 million

Quarterly Net Income

$1.332 million

N/A

Paying Subscribers

22,696

21,544

Active Subscribers

NR

360,000

Average monthly unique visitors (4)

33.5 million (3 months)

22 million (6 months)

Unique visitor growth

61%

64%

Price/Trailing Revenue

15

12.4

 

  1. Total Revenue Growth from quarter ended June 2011 to quarter ended June 2012.
  2. Marketplace Revenue consists of subscription based products sold to real estate professionals. Trulia has 2 categories. Trulia ads enable “real estate professionals to promote themselves on our search results page  and property details pages for a local market area. “ “Our second set of products allows real estate professionals to receive prominent placement of their listings in our search results.” Zillow’s “consists of subscriptions sold to real estate agents under our Premier Agent program and CPC advertising related to our Zillow Mortgage Marketplace sold to mortgage lenders.” “Our Premier Agent program allows local real estate agents to establish a persistent mobile and online presence on Zillow in the zip codes they serve.” “In Zillow Mortgage Marketplace, participating qualified mortgage lenders make a prepayment to gain access to consumers interested in connecting with mortgage professionals.” 
  3. Display Revenue, for Zillow, “primarily consists of graphical mobile and web advertising sold on a CPM basis to advertisers primarily in the real estate industry, including real estate brokerages, home builders, mortgage lenders and home services providers”. For Trulia, “we derive media revenue from sales of display advertisements to real estate advertisers, such as home improvement companies and mortgage lenders.”
  4. Average monthly unique visitors are for 3 months ended June 30, 2012 for Zillow. For Trulia, it is for 6 months ended June 30, 2012.

See Trulia’s S1 Filing here and Zillow’s quarterly filing here.

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Disclosure: I do not own shares of Z or TRLA and I do not plan to initiate a position within the next week.

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