Critical Comparison: EVO Payments (EVOP) & CoStar Group (CSGP)

EVO Payments (NASDAQ:EVOP) and CoStar Group (NASDAQ:CSGP) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares EVO Payments and CoStar Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EVO Payments $504.75 million 3.72 -$40.24 million N/A N/A
CoStar Group $965.23 million 14.64 $122.69 million $3.87 100.34

CoStar Group has higher revenue and earnings than EVO Payments.

Institutional & Insider Ownership

22.2% of EVO Payments shares are held by institutional investors. Comparatively, 96.2% of CoStar Group shares are held by institutional investors. 2.5% of CoStar Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for EVO Payments and CoStar Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EVO Payments 0 6 3 0 2.33
CoStar Group 1 0 9 0 2.80

EVO Payments currently has a consensus price target of $23.75, suggesting a potential upside of 1.37%. CoStar Group has a consensus price target of $437.10, suggesting a potential upside of 12.57%. Given CoStar Group’s stronger consensus rating and higher probable upside, analysts clearly believe CoStar Group is more favorable than EVO Payments.

Profitability

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

Net Margins Return on Equity Return on Assets
EVO Payments N/A N/A N/A
CoStar Group 16.27% 7.25% 6.42%

Summary

CoStar Group beats EVO Payments on 11 of the 11 factors compared between the two stocks.

About EVO Payments

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor servicing approximately 525,000 merchants. The company processes approximately 900 million transactions in North America and approximately 1.7 billion transactions in Europe. Its payment and commerce solutions consist of gateway solutions, online fraud prevention and management reporting, online hosted payments page capabilities, security tokenization, and encryption solutions at the point-of-sale and online; dynamic currency conversion; loyalty offers; and other ancillary solutions. The company also offers processing capabilities for specific industries and provides merchants with recurring billing, multi-currency authorization, and settlement and cross-border processing. In addition, it provides other services that enable through technical integrations with third-party providers. EVO Payments, Inc. operates as an intermediary between merchants and card networks. The company was founded in 1989 and is headquartered in Atlanta, Georgia.

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.

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