Redfin vs. Zillow: Which Will Be the Better Stock?

Redfin Corporation's (NASDAQ: RDFN) recent IPO was a big hit with investors. The stock shot up almost 45% on its first day of trading. Here is a look at what the company does and how it compares with real estate internet pioneer Zillow Group (NASDAQ: Z) (NASDAQ: ZG).

Redfin is a web-based residential real estate brokerage company that uses the internet to find buyers and sellers for its agents to work with. Unlike traditional real estate companies, Redfin's lead agents are employees of the company and are paid a salary with benefits. Most real estate brokerages have agents who act as independent contractors and are paid strictly on commission. Revenue for the company comes from collecting commissions on deals that its realtors close.

Image source: Redfin.

Source: Fool.com