Financial Comparison: CoStar Group (CSGP) versus Autohome (ATHM)

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

Insider and Institutional Ownership

99.7% of CoStar Group shares are owned by institutional investors. Comparatively, 34.5% of Autohome shares are owned by institutional investors. 3.0% of CoStar Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

CoStar Group has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Autohome has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CoStar Group and Autohome, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 0 0 5 0 3.00
Autohome 0 1 4 0 2.80

CoStar Group currently has a consensus price target of $308.00, suggesting a potential upside of 8.20%. Autohome has a consensus price target of $50.00, suggesting a potential downside of 20.32%. Given CoStar Group’s stronger consensus rating and higher possible upside, analysts plainly believe CoStar Group is more favorable than Autohome.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CoStar Group $894.73 million 10.44 $220.39 million $2.99 95.20
Autohome $953.10 million 7.64 $232.19 million $1.87 33.56

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

Profitability

This table compares CoStar Group and Autohome’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoStar Group 10.85% 7.19% 5.49%
Autohome 23.17% 22.64% 15.55%

Summary

CoStar Group beats Autohome 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.

Autohome Company Profile

Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.

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