Contrasting CoStar Group (NASDAQ:CSGP) & Trip.com Group (NASDAQ:TCOM)

CoStar Group (NASDAQ:CSGP) and Trip.com Group (NASDAQ:TCOM) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

89.1% of CoStar Group shares are held by institutional investors. Comparatively, 69.8% of Trip.com Group shares are held by institutional investors. 2.1% of CoStar Group shares are held by company insiders. Comparatively, 23.0% of Trip.com Group shares are held by company 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.

Risk & Volatility

CoStar Group has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
CoStar Group 19.76% 8.81% 7.24%
Trip.com Group -8.95% 1.01% 0.51%

Analyst Ratings

This is a summary of current ratings for CoStar Group and Trip.com Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 0 1 10 0 2.91
Trip.com Group 0 7 9 0 2.56

CoStar Group currently has a consensus price target of $801.55, suggesting a potential downside of 5.67%. Trip.com Group has a consensus price target of $31.62, suggesting a potential upside of 16.24%. Given Trip.com Group’s higher possible upside, analysts clearly believe Trip.com Group is more favorable than CoStar Group.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $1.40 billion 23.90 $314.96 million $9.12 93.18
Trip.com Group $5.13 billion 2.93 $1.01 billion $1.16 23.45

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

Summary

CoStar Group beats Trip.com Group on 9 of the 14 factors compared between the two stocks.

About CoStar Group

CoStar Group, Inc. provides information, analytics, and online marketplaces to the commercial real estate industry in the United States and the United Kingdom. The company offers CoStar Property Professional service that offers inventory of office, industrial, retail, and multifamily properties and land. It also provides CoStar COMPS Professional that covers comparable commercial real estate sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStar Lease Comps, a solution to capture, manage, and maintain lease data; CoStar Lease Analysis, a workflow tool; CoStar Advertising to market a space for lease or a property for sale; CoStar Private Sale Network, which provides custom-designed and branded Websites; and CoStar and CoStar Go CoStar mobile apps. In addition, the company offers CoStar Real Estate Manager, a real estate and asset management, and lease accounting software; CoStar Risk Analytics, a commercial real estate risk management tool; CoStar Brokerage Applications; CoStar Investment Analysis Request, a business intelligence software; and CoStar Investment Analysis Portfolio Maximizer, a real estate portfolio management software. Further, it provides apartment marketing sites, such as Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, and Cozy.co; LoopNet Premium Lister and LoopNet Power Listings for commercial real estate professionals; LoopLink, an online real estate marketing and database services suite; Listing Manager, an online listing tool; Realla, a commercial property listings and data management platform; LandsofAmerica, LandAndFarm, and LandWatch online marketplaces for rural land for sale; and BizBuySell and BizQuest online marketplaces for operating businesses for sale. The company has a strategic relationship with Buxton Company. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.

About Trip.com Group

Trip.com Group Limited operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. The company acts as an agent for hotel-related transactions and selling air tickets; and provides other related services, including sale of aviation and train insurance, air-ticket delivery services, online check-in, and other value-added services, such as online seat selection, express security check, and real-time flight status. It also provides independent leisure travelers bundled packaged-tour products comprising group tours, semi-group tours, and customized and packaged tours with various transportation arrangements, such as flights, cruises, buses, and car rental services. In addition, the company offers integrated transportation and accommodation services; various value-added services, such as transportation at destinations and tickets, activities, insurance, visa services, and tour guides; and supplier management and customer relationship management services. Further, it provides its corporate clients with travel data collection and analysis, industry benchmark, cost saving analysis, and travel management solutions; and Corporate Travel Management System, an online platform that integrates information maintenance, online booking and authorization, online enquiry, and travel report system. Additionally, the company offers online advertising services. It operates primarily under the Ctrip, Qunar, Trip.com, and Skyscanner brand names. The company has strategic partnership agreements with MeliĆ” Hotels International, S.A. to provide access to membership offers and benefits on 400 MeliĆ” hotels on Ctrip's Website and mobile app; and TripAdvisor, Inc. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in November 2019. Trip.com Group Limited was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

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