Contrasting CoStar Group (CSGP) and B. Riley Financial (RILY)

CoStar Group (NASDAQ: CSGP) and B. Riley Financial (NASDAQ:RILY) 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, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
CoStar Group 15.09% 6.97% 5.95%
B. Riley Financial 0.56% 12.71% 2.48%

Institutional & Insider Ownership

97.2% of CoStar Group shares are held by institutional investors. Comparatively, 46.8% of B. Riley Financial shares are held by institutional investors. 2.5% of CoStar Group shares are held by insiders. Comparatively, 24.2% of B. Riley Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CoStar Group and B. Riley Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 1 0 9 0 2.80
B. Riley Financial 0 0 0 0 N/A

CoStar Group presently has a consensus target price of $385.80, suggesting a potential downside of 8.66%. Given CoStar Group’s higher possible upside, analysts clearly believe CoStar Group is more favorable than B. Riley Financial.

Dividends

B. Riley Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. CoStar Group does not pay a dividend.

Earnings & Valuation

This table compares CoStar Group and B. Riley Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $965.23 million 15.92 $122.69 million $3.87 109.15
B. Riley Financial $322.18 million 1.82 $11.55 million N/A N/A

CoStar Group has higher revenue and earnings than B. Riley Financial.

Volatility & Risk

CoStar Group has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, B. Riley Financial has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Summary

CoStar Group beats B. Riley Financial on 10 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 B. Riley Financial

B. Riley Financial, Inc. provides financial services and solutions in North America, Australia, and Europe. The company operates in four segments: Capital Markets, Auction and Liquidation, Valuation and Appraisal, and Principal Investments – United Online. It offers investment banking services, including merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements; and corporate finance, research, securities lending, wealth management, and sales and trading services to corporate, institutional, and high net worth clients. The company also provides retail store liquidation, and wholesale and industrial assets disposition services; valuation and appraisal services to financial institutions, lenders, private equity firms, and other providers of capital; and consumer subscription services consisting of Internet access services under the NetZero and Juno brands, as well as email, Internet security, Web hosting, and other services. In addition, it offers advisory services to private funds, and institutional and high net worth investors; multi-family office practice and wealth management services to ultra-high net worth individuals and families; and senior secured and second lien secured loans to middle market public and the private U.S. companies. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. B. Riley Financial, Inc. was founded in 1973 and is headquartered in Woodland Hills, California.

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