CoStar Group vs Teradyne

CoStar Group vs Teradyne compares two leading technology and data companies. This page examines their business models, financial performance, and market context in a clear, neutral way, helping readers understand how each company operates and competes. Educational content, not financial advice.

CoStar Group vs Teradyne compares two leading technology and data companies. This page examines their business models, financial performance, and market context in a clear, neutral way, helping reader...

Comparison Snapshot

Key Financial Metrics

CSGP

Metric

TER

$27.89B

Market Cap

$36.29B

28.36%

Potential Profit

-13.79%

Buy

Analyst Rating

Buy

Why It's Moving

CoStar Group outlines aggressive 2026 growth targets and $1.5B buyback amid Homes.com investment pivot.

New 2026 guidance forecasts net income of $175-$215 million, highlighting improved profitability margins despite recent share price weakness.
$1.5 billion share buyback follows completion of a prior $500 million program, underscoring commitment to shareholder returns.
Homes.com strategy shifts to reduced net investment—down more than $300 million from 2025—with positive adjusted EBITDA targeted for 2030.

Sentiment:

🐃Bullish

Teradyne surges to 52-week high on tech sector rotation and AI optimism.

Sector rotation drives gains as investors pile into tech amid Nasdaq-100's 0.39% rise, highlighting TER's strength in semiconductor testing.
BofA hikes price target to $235 with Buy rating, viewing 2026 as key midpoint in AI infrastructure upgrade cycle boosting demand.
Analyst upgrades signal robust growth outlook, offsetting choppy AI scrutiny with faster large language model and AI factory builds.

Sentiment:

🐃Bullish

CoStar Group outlines aggressive 2026 growth targets and $1.5B buyback amid Homes.com investment pivot.

New 2026 guidance forecasts net income of $175-$215 million, highlighting improved profitability margins despite recent share price weakness.
$1.5 billion share buyback follows completion of a prior $500 million program, underscoring commitment to shareholder returns.
Homes.com strategy shifts to reduced net investment—down more than $300 million from 2025—with positive adjusted EBITDA targeted for 2030.

Sentiment:

🐃Bullish

Teradyne surges to 52-week high on tech sector rotation and AI optimism.

Sector rotation drives gains as investors pile into tech amid Nasdaq-100's 0.39% rise, highlighting TER's strength in semiconductor testing.
BofA hikes price target to $235 with Buy rating, viewing 2026 as key midpoint in AI infrastructure upgrade cycle boosting demand.
Analyst upgrades signal robust growth outlook, offsetting choppy AI scrutiny with faster large language model and AI factory builds.

Sentiment:

🐃Bullish

Investment Analysis

CoStar Group

CSGP

Pros

CoStar Group has a strong market capitalization around $30 billion, highlighting significant market presence and investment capacity.
The company shows accelerating revenue growth with updated earnings guidance signaling robust profitability in its core segments.
Analyst consensus is positive with majority ratings of buy and an average price target suggesting around 22% upside potential.

Considerations

CoStar Group’s stock is relatively highly valued with a very high P/E ratio, suggesting potential overvaluation and risk of correction.
The price-to-sales ratio is substantially higher than industry norms, indicating the market has priced in aggressive growth assumptions.
Recent share price volatility and mixed analyst sentiments reflect some investor uncertainty and potential liquidity risks.

Teradyne

TER

Pros

Teradyne holds substantial competitive advantages due to its deep capabilities in chip and AI testing, hard to replicate by competitors.
Strong financial health evidenced by good profitability metrics and consistent dividend payments supports sustainability.
Strategic positioning in emerging technologies like silicon photonics and high-bandwidth memory testing offer new growth avenues.

Considerations

Teradyne’s current stock trades at a premium, with some valuation metrics indicating potential overpricing relative to fundamentals.
The industry’s high uncertainty and cyclical nature of semiconductor testing markets pose risks to consistent growth.
The PEG ratio and high price-to-book could indicate stretched valuation, presenting potential downside if growth slows.

Related Market Insights

Digital Real Estate Under Scrutiny: FTC Takes Aim at Zillow and Redfin

FTC sues Zillow & Redfin over alleged anticompetitive practices, disrupting the digital property market. Discover investment opportunities in competing platforms with Nemo.