CoStar Group (NASDAQ: CSGP) is one of 51 publicly-traded companies in the “Internet Services” industry, but how does it compare to its peers? We will compare CoStar Group to similar businesses based on the strength of its institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

90.9% of CoStar Group shares are owned by institutional investors. Comparatively, 73.4% of shares of all “Internet Services” companies are owned by institutional investors. 3.0% of CoStar Group shares are owned by company insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares CoStar Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoStar Group 11.63% 7.63% 5.86%
CoStar Group Competitors 0.57% 26.87% 6.34%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CoStar Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 0 0 6 0 3.00
CoStar Group Competitors 405 1578 2654 86 2.51

CoStar Group currently has a consensus price target of $331.00, indicating a potential upside of 12.39%. As a group, “Internet Services” companies have a potential upside of 2.60%. Given CoStar Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe CoStar Group is more favorable than its peers.

Risk and Volatility

CoStar Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, CoStar Group’s peers have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares CoStar Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CoStar Group $894.73 million $220.39 million 88.97
CoStar Group Competitors $956.92 million $128.04 million 44.90

CoStar Group’s peers have higher revenue, but lower earnings than CoStar Group. CoStar Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

CoStar Group beats its peers on 8 of the 13 factors compared.

About CoStar Group

CoStar Group, Inc. (CoStar) is a provider of information, analytics and online marketplaces to the commercial real estate and related business community through its database of commercial real estate information covering the United States, the United Kingdom, and parts of Canada, Spain, Germany and France. The Company provides online marketplaces for commercial real estate, apartment rentals, lands for sale and businesses for sale. It manages its business geographically in two segments: North America, which includes the United States and Canada, and International, which includes the United Kingdom, Spain, Germany and France. Its suite of information, analytics and online marketplaces is branded and marketed to its customers. Its services are primarily derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing and using its information. It has five brands: CoStar, LoopNet, Apartments.com, BizBuySell and LandsofAmerica.

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