Comparing CoStar Gr With Industry Competitors In Real Estate Management & Development Industry

In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating CoStar Gr CSGP and its primary competitors in the Real Estate Management & Development industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.

CoStar Gr Background

CoStar Group is a leading provider of commercial real estate data and marketplace listing platforms. Its data offering contains in-depth analytical information on over 5 million commercial real estate properties related to various subsectors including office, retail, multifamily, healthcare, industrial, self-storage, and data centers. It operates many flagship brands such as CoStar Suite, LoopNet,, BizBuySell, and LandsofAmerica, with more than 80% of its revenue classified as subscription-based. The company also recently expanded its presence in Canada, the United Kingdom, Spain, and France.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
CoStar Group Inc 82.94 4.65 13.98 1.27% $0.09 $0.5 12.16%
CBRE Group Inc 44.66 3.37 0.86 2.41% $0.41 $1.47 4.5%
KE Holdings Inc 22.88 1.81 1.71 1.62% $0.92 $4.88 1.22%
eXp World Holdings Inc 458.67 8.47 0.51 0.53% $0.0 $0.08 -1.97%
Average 175.4 4.55 1.03 1.52% $0.44 $2.14 1.25%

When analyzing CoStar Gr, the following trends become evident:

  • A Price to Earnings ratio of 82.94 significantly below the industry average by 0.47x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 4.65 which exceeds the industry average by 1.02x.

  • The Price to Sales ratio of 13.98, which is 13.57x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • With a Return on Equity (ROE) of 1.27% that is 0.25% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $90 Million is 0.2x below the industry average, suggesting potential lower profitability or financial challenges.

  • The company has lower gross profit of $500 Million, which indicates 0.23x below the industry average. This potentially indicates lower revenue after accounting for production costs.

  • The company's revenue growth of 12.16% exceeds the industry average of 1.25%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By evaluating CoStar Gr against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

  • CoStar Gr falls in the middle of the list when considering the debt-to-equity ratio.

  • This indicates that the company has a moderate level of debt relative to its equity with a debt-to-equity ratio of 0.15, suggesting a balanced financial structure with a reasonable debt-equitymix.

Key Takeaways

CoStar Gr has a low PE ratio compared to its peers in the Real Estate Management & Development industry, indicating that it may be undervalued. The company also has a high PB ratio, suggesting that investors are willing to pay a premium for its assets. Additionally, the high PS ratio indicates that CoStar Gr's sales are relatively high compared to its market capitalization. On the other hand, the company has a low ROE, indicating lower profitability compared to its peers. The low EBITDA and gross profit further suggest potential financial challenges. However, CoStar Gr has a high revenue growth rate, indicating potential future growth opportunities.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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