CoStar Group (CSGP) vs. WEX (WEX) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CoStar Group and WEX, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 1 0 8 0 2.78
WEX 0 4 6 0 2.60



CoStar Group currently has a consensus price target of $446.78, suggesting a potential upside of 25.24%. WEX has a consensus price target of $193.00, suggesting a potential upside of 8.81%. Given CoStar Group’s stronger consensus rating and higher probable upside, analysts clearly believe CoStar Group is more favorable than WEX.

Profitability

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

Net Margins Return on Equity Return on Assets
CoStar Group 17.61% 7.63% 6.97%
WEX 14.61% 15.61% 4.00%

Risk and Volatility

CoStar Group has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, WEX has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $965.23 million 13.46 $122.69 million $3.87 92.18
WEX $1.25 billion 6.11 $160.26 million $4.70 37.74

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

Institutional & Insider Ownership

96.2% of CoStar Group shares are held by institutional investors. Comparatively, 99.1% of WEX shares are held by institutional investors. 2.5% of CoStar Group shares are held by company insiders. Comparatively, 4.6% of WEX shares are held 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.

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 WEX

WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment offers fleet vehicle payment and processing services. Its services include customer, account activation, and account retention services; authorization and billing inquiries, and account maintenance services; premium fleet services; credit and collections services; and merchant services. This segment markets its products directly to commercial and government vehicle fleet customers with small, medium, and large fleets, as well as with over-the-road and long haul fleets; and indirectly through co-branded and private label relationships. The Travel and Corporate Solutions segment provides payment processing solutions for corporate payment and transaction monitoring needs. Its products include virtual cards that are used for transactions where no card is presented and that require pre-authorization; and prepaid and gift card products that enables secure payment and financial management solutions with single card options, access to open or closed loop redemption, load limits, and with various expirations. This segment markets its products directly to commercial and government organizations. The Health and Employee Benefit Solutions segment offers healthcare payment products and software-as-a-service consumer directed platforms for healthcare market, as well as payroll related and employee benefit products in Brazil. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is headquartered in South Portland, Maine.

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