Reviewing Tucows (TCX) and CoStar Group (CSGP)
Tucows (NASDAQ: TCX) and CoStar Group (NASDAQ:CSGP) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
This is a summary of current ratings and price targets for Tucows and CoStar Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CoStar Group has a consensus price target of $311.83, indicating a potential upside of 14.73%. Given CoStar Group’s higher probable upside, analysts clearly believe CoStar Group is more favorable than Tucows.
Insider and Institutional Ownership
42.9% of Tucows shares are owned by institutional investors. Comparatively, 99.8% of CoStar Group shares are owned by institutional investors. 13.2% of Tucows shares are owned by insiders. Comparatively, 3.0% of CoStar Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Tucows has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, CoStar Group has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
This table compares Tucows and CoStar Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Tucows and CoStar Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tucows||$251.66 million||2.44||$29.37 million||$1.43||40.87|
|CoStar Group||$894.73 million||9.97||$220.39 million||$2.99||90.90|
CoStar Group has higher revenue and earnings than Tucows. Tucows is trading at a lower price-to-earnings ratio than CoStar Group, indicating that it is currently the more affordable of the two stocks.
CoStar Group beats Tucows on 10 of the 13 factors compared between the two stocks.
Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.
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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