Head-To-Head Review: Envestnet (NYSE:ENV) & CoStar Group (NYSE:CSGP)

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

Profitability

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

Net Margins Return on Equity Return on Assets
CoStar Group 21.76% 10.09% 9.12%
Envestnet -2.52% 10.28% 4.64%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoStar Group 1 0 7 0 2.75
Envestnet 0 4 5 1 2.70

CoStar Group presently has a consensus target price of $551.13, indicating a potential downside of 5.46%. Envestnet has a consensus target price of $73.78, indicating a potential upside of 2.60%. Given Envestnet’s higher possible upside, analysts plainly believe Envestnet is more favorable than CoStar Group.

Institutional & Insider Ownership

96.0% of CoStar Group shares are owned by institutional investors. Comparatively, 94.2% of Envestnet shares are owned by institutional investors. 2.1% of CoStar Group shares are owned by company insiders. Comparatively, 5.0% of Envestnet shares are owned 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.

Valuation and Earnings

This table compares CoStar Group and Envestnet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoStar Group $1.19 billion 17.87 $238.33 million $7.40 78.78
Envestnet $812.36 million 4.32 $5.76 million $1.25 57.53

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

Risk & Volatility

CoStar Group has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Envestnet has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Summary

CoStar Group beats Envestnet on 10 of the 15 factors compared between the two stocks.

CoStar Group Company Profile

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.

Envestnet Company Profile

Envestnet, Inc., together with its subsidiaries, provides intelligent systems for wealth management and financial wellness in the United States and internationally. It operates through Envestnet and Envestnet | Yodlee segments. The company's product and services suites include Envestnet | Enterprise, which provides an end-to-end open architecture wealth management platform, as well as sells data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Tamarac that provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; Envestnet | Retirement Solutions, which offer a suite of services for advisor-sold retirement plans; and Envestnet | Portfolio Management Consultants that provide research, due diligence, and consulting services to assist advisors in creating investment solutions for their clients, and patented portfolio overlay and tax optimization services. It also provides Envestnet | Yodlee data aggregation and data analytics platform, which offers cloud-based innovation for digital financial services. The company primarily serves banks, wealth management and brokerage firms, Internet services companies, and registered investment advisers. Envestnet, Inc. was founded in 1999 and is headquartered in Chicago, Illinois.

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