CoStar vs Zillow

CoStar Group and Zillow Group are two leading companies in the real estate industry, each with their own unique strengths and market positions. CoStar is known for its comprehensive database of commercial real estate information and analytics, while Zillow is a household name in the residential real estate market with its popular online platform for buying, selling, and renting homes. Both companies have seen significant growth in recent years, but their stock performance and future outlooks differ, making them interesting choices for investors to compare and analyze.

CoStar or Zillow?

When comparing CoStar and Zillow, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CoStar and Zillow.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CoStar has a dividend yield of -%, while Zillow has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CoStar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Zillow reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CoStar P/E ratio at 149.13 and Zillow's P/E ratio at -104.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CoStar P/B ratio is 4.29 while Zillow's P/B ratio is 3.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CoStar has seen a 5-year revenue growth of 0.83%, while Zillow's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CoStar's ROE at 2.91% and Zillow's ROE at -3.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $76.68 for CoStar and $60.72 for Zillow. Over the past year, CoStar's prices ranged from $67.35 to $100.38, with a yearly change of 49.04%. Zillow's prices fluctuated between $33.23 and $66.75, with a yearly change of 100.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.