Analyzing CoStar Group (CSGP) and Angie’s List (ANGI)

CoStar Group (NASDAQ: CSGP) and Angie’s List (NASDAQ:ANGI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Insider and Institutional Ownership

98.9% of CoStar Group shares are owned by institutional investors. Comparatively, 68.7% of Angie’s List shares are owned by institutional investors. 3.1% of CoStar Group shares are owned by insiders. Comparatively, 18.2% of Angie’s List shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CoStar Group and Angie’s List’s 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%
Angie’s List -17.04% -25.20% -14.67%

Volatility & Risk

CoStar Group has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Angie’s List has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for CoStar Group and Angie’s List, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 0 0 7 0 3.00
Angie’s List 1 5 5 0 2.36

CoStar Group currently has a consensus target price of $335.00, suggesting a potential upside of 14.80%. Angie’s List has a consensus target price of $11.92, suggesting a potential upside of 7.84%. Given CoStar Group’s stronger consensus rating and higher probable upside, research analysts plainly believe CoStar Group is more favorable than Angie’s List.

Earnings and Valuation

This table compares CoStar Group and Angie’s List’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $837.63 million 12.59 $85.07 million $3.31 88.16
Angie’s List $323.33 million 2.14 -$7.85 million ($0.12) -92.08

CoStar Group has higher revenue and earnings than Angie’s List. Angie’s List is trading at a lower price-to-earnings ratio than CoStar Group, indicating that it is currently the more affordable of the two stocks.

Summary

CoStar Group beats Angie’s List on 12 of the 13 factors compared between the two stocks.

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.

About Angie’s List

ANGI Homeservices Inc. is focused on creating digital marketplace for home services, connecting homeowners across the globe with home service professionals. The Company operates 10 brands including Angie’s List, HomeAdvisor, HomeStars, Instapro, MyBuilder, MyHammer, Travaux, Werkspot, CraftJack and mHelpDesk. The Company’s brand portfolio provides homeowners with tools and resources for home repair, maintenance and improvement projects. Angie’s List is America’s online review platform and provides services ranging from home repair, maintenance and improvement to auto service and health care. HomeAdvisor is the operator of the home services marketplace across the globe. HomeStars is online platform connecting homeowners with home renovators, repairmen and retailers throughout Canada. Instapro is Italy’s home services network connecting homeowners with service professionals for home renovation projects.

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