CoStar Group (CSGP) & Healthequity (HQY) Head to Head Analysis

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

Insider and Institutional Ownership

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98.6% of CoStar Group shares are owned by institutional investors. Comparatively, 99.4% of Healthequity shares are owned by institutional investors. 3.1% of CoStar Group shares are owned by company insiders. Comparatively, 29.0% of Healthequity shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CoStar Group and Healthequity, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 1 0 8 0 2.78
Healthequity 0 1 8 0 2.89

CoStar Group presently has a consensus target price of $378.33, indicating a potential upside of 7.70%. Healthequity has a consensus target price of $66.33, indicating a potential upside of 5.59%. Given CoStar Group’s higher possible upside, analysts clearly believe CoStar Group is more favorable than Healthequity.

Risk & Volatility

CoStar Group has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Healthequity has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Earnings and Valuation

This table compares CoStar Group and Healthequity’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $965.23 million 13.14 $122.69 million $3.87 90.77
Healthequity $229.52 million 16.68 $47.36 million $0.54 116.33

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

Profitability

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

Net Margins Return on Equity Return on Assets
CoStar Group 12.71% 6.75% 5.51%
Healthequity 20.64% 13.47% 12.76%

Summary

Healthequity beats CoStar Group on 8 of the 13 factors compared between the two stocks.

About CoStar Group

CoStar Group, Inc. provides information, analytics, and online marketplace to the commercial real estate industry in North America and internationally. The company offers CoStar Property Professional service that provides inventory of office, industrial, retail, and multifamily properties and land. It also provides CoStar COMPS Professional, which covers comparable commercial real estate sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStarGo, an iPad and Android application; CoStar Lease Comps, an integrated solution that captures, manages, maintains, and analyzes lease data; CoStar Advertising to market a space for lease or a property for sale; and CoStar Portfolio Strategy to meet the research needs of commercial real estate owners, investors, lenders, and government regulators. In addition, the company offers CoStar Investment Analysis Portfolio Maximizer, CoStar Investment Analysis Request, CoStar Real Estate Manager Corporate Edition, and CoStar Real Estate Manager Retail Edition that are real estate management software solutions; CoStar Private Sale Network, which provides clients with custom-designed and branded Websites; and CoStar Brokerage Applications. Further, it offers LoopNet Premium Lister and LoopNet Power Listings for commercial real estate professionals and other customers to market their listings; LoopNet Premium Searcher for members searching for commercial real estate; LoopLink, an online real estate marketing and database services suite; apartment marketing sites, including Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, and The Screening Pros; LandsofAmerica, LandAndFarm, and LandWatch that are online marketplaces for rural land for sale; and BizBuySell and BizQuest that are online marketplaces for operating businesses for sale. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.

About Healthequity

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

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