CoStar Group (NASDAQ:CSGP – Get Free Report) and Taboola.com (NASDAQ:TBLA – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
96.6% of CoStar Group shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 1.1% of CoStar Group shares are held by insiders. Comparatively, 24.7% of Taboola.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares CoStar Group and Taboola.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CoStar Group | 0.66% | 2.45% | 1.99% |
| Taboola.com | 1.34% | 8.12% | 4.92% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoStar Group | 2 | 5 | 12 | 1 | 2.60 |
| Taboola.com | 0 | 4 | 5 | 0 | 2.56 |
CoStar Group presently has a consensus price target of $93.38, suggesting a potential upside of 39.36%. Taboola.com has a consensus price target of $4.80, suggesting a potential upside of 6.90%. Given CoStar Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe CoStar Group is more favorable than Taboola.com.
Risk and Volatility
CoStar Group has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
Valuation and Earnings
This table compares CoStar Group and Taboola.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoStar Group | $2.74 billion | 10.38 | $138.70 million | $0.05 | 1,340.20 |
| Taboola.com | $1.77 billion | 0.73 | -$3.76 million | $0.08 | 56.13 |
CoStar Group has higher revenue and earnings than Taboola.com. Taboola.com 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 Taboola.com on 9 of the 15 factors compared between the two stocks.
About CoStar Group
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. It also provides Leasing, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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