This has been a good day for top real-estate websites Trulia (TRLA) and Zillow (Z), which surged 30% and 15% respectively. Word on the Street is that Zillow is looking to buy out its smaller rival for as much as $2 billion.
To provide some background, Zillow is the most-trafficked real-estate site in the U.S., while Trulia follows at second. In June, 85 million unique visitors browsed either site, account for 89% of all traffic to real estate sites. Both sites list sale or rental properties on behalf of homeowners and real estate agents, which pay either a one-time fee or a subscription fee.
In recent months, both companies have been ramping up advertising spending in an effort to gain the upper hand on each other. But if Zillow has its way, the two rivals will merge into a company that will dominate the industry.
So where does this leave investors? Well, if you plug the two companies into Portfolio Grader, you’ll see that one of the two companies comes out on top and is a good buy, while the other has more work to do: