CoStar Group (NASDAQ:CSGP – Get Free Report) and Wix.com (NASDAQ:WIX – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for CoStar Group and Wix.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoStar Group | 2 | 5 | 13 | 1 | 2.62 |
| Wix.com | 1 | 2 | 19 | 2 | 2.92 |
CoStar Group presently has a consensus target price of $86.38, indicating a potential upside of 47.67%. Wix.com has a consensus target price of $167.95, indicating a potential upside of 75.24%. Given Wix.com’s stronger consensus rating and higher possible upside, analysts clearly believe Wix.com is more favorable than CoStar Group.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoStar Group | $2.74 billion | 9.06 | $138.70 million | $0.05 | 1,169.80 |
| Wix.com | $1.76 billion | 3.05 | $138.32 million | $2.34 | 40.96 |
CoStar Group has higher revenue and earnings than Wix.com. Wix.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.
Risk and Volatility
CoStar Group has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Institutional & Insider Ownership
96.6% of CoStar Group shares are held by institutional investors. Comparatively, 81.5% of Wix.com shares are held by institutional investors. 1.1% of CoStar Group shares are held by insiders. Comparatively, 6.2% of Wix.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares CoStar Group and Wix.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% |
| Wix.com | 7.20% | -102.59% | 7.98% |
Summary
Wix.com beats CoStar Group 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 Wix.com
Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.
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