Reviewing CoStar Group (CSGP) and YY (YY)

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

Profitability

This table compares CoStar Group and YY’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%
YY 22.23% 34.26% 22.11%

Institutional & Insider Ownership

98.9% of CoStar Group shares are owned by institutional investors. Comparatively, 56.9% of YY shares are owned by institutional investors. 3.1% of CoStar Group shares are owned by company insiders. Comparatively, 43.0% of YY shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares CoStar Group and YY’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $837.63 million 14.73 $85.07 million $3.31 103.08
YY $1.18 billion 7.37 $219.49 million $6.17 22.40

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

Risk and Volatility

CoStar Group has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, YY has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for CoStar Group and YY, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 1 0 8 0 2.78
YY 1 1 11 0 2.77

CoStar Group presently has a consensus price target of $343.89, indicating a potential upside of 0.79%. YY has a consensus price target of $91.75, indicating a potential downside of 33.61%. Given CoStar Group’s stronger consensus rating and higher possible upside, research analysts clearly believe CoStar Group is more favorable than YY.

Summary

YY beats CoStar Group on 8 of the 14 factors compared between the two stocks.

CoStar Group Company Profile

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.

YY Company Profile

YY Inc. (YY) is a social platform that engages users in real-time online group activities through voice, video and text on personal computers and mobile devices. The Company’s segments include YY IVAS and others, Huya broadcasting, and 100 Education. YY enables users to create and organize groups of varying sizes to discover and participate in a range of online activities, including music shows, online games, dating shows, live game broadcasting and e-learning. YY offers users an entertainment experience through its social community. It owns the domain names of YY.com, Duowan.com, 100.com, Huya.com, Edu24ol.com and Zhiniu8.com. The Company’s YY platform, including YY.com, is jointly operated by personnel from Guangzhou Huaduo and Zhuhai Duowan. Its product, YY Client, enables users to engage in live interactions online. Its Web-based YY enables users to conduct real-time interactions through Web browsers without requiring any downloads or installations.

Receive News & Ratings for CoStar Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CoStar Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply