Just before OnTheMarket’s first anniversary, a high profile stock market commentary website has given their competitor Zoopla a solid endorsement. In the article written by the analyst Peter Stephens from the Motley Fool website, he indicates that with the stock market unstable, it’s a good idea for investors to seek out companies “with wide margins of safety”.
He continues “[Zoopla] was able to grow its bottom line by an impressive 29% in the last financial year, with demand for housing remaining strong as a result of an improving UK economy. This trend looks set to continue, since Zoopla is expected to increase its net profit by another 29% in the current financial year and despite this, it trades on a relatively low valuation”.
Stephens also says there is the potential for an interest rate increase in 2016. He concludes “But with rates likely to stay low over the coming years the UK property market is set to remain buoyant and this provides Zoopla with further opportunities for growth”.
The future of Zoopla was in the past uncertain due to the launch of OnTheMarket, but last week it announced the return of a few agencies from the rival portal. The Financial Times reported Zoopla has been the subject of takeover gossip in recent days.
OTM has issued a statement to mark their anniversary, saying it is now recognised as a “challenger brand.”
The statement continues:
“We have already revealed this year that we have achieved the support of 6,500 estate and letting agent offices – a 50% increase on this time last year – and we are now on our way to our next milestone of achieving support from 7,500 offices.
There are many areas of the UK where we are already the number 2 portal in terms of available residential listings – and have been for a long time – and many others where just a few extra offices would push us over the line”.