CoStar Group vs Telefónica
This page compares CoStar Group Inc. and Telefónica, S.A., examining how their business models, financial performance, and market context differ and interact. The aim is to present a neutral, accessible overview for readers evaluating contrasts and contexts in the sector. Educational content, not financial advice.
This page compares CoStar Group Inc. and Telefónica, S.A., examining how their business models, financial performance, and market context differ and interact. The aim is to present a neutral, accessib...
Why It's Moving
CoStar Group's shares dip amid share price weakness, but analysts spotlight undervaluation and robust growth ahead.
- Quantum Capital Management sold 23.5% of its CSGP stake in Q2, part of ongoing institutional adjustments, while smaller funds initiated positions.
- Recent analysis pegs CSGP as 26% undervalued at $68 closing price versus $91.94 fair value, banking on 16.9% annual revenue growth and margins surging to 18.6% in three years via Homes.com expansion.
- November reports show strengthening national home price appreciation and multifamily rent growth, bolstering CoStar's core data services amid a softening stock performance.
Analysts Pile On with Strong Sell Consensus as Telefónica Faces Renewed Pressure.
- Bank of America reaffirmed 'underperform' on December 4 with a $3.83 target, signaling limited upside potential in core markets.
- Weiss Ratings stuck with 'sell (d)' this week, while Citigroup's recent neutral downgrade underscores profitability challenges.
- Trading at a 634% premium to Morningstar's $1.80 fair value, the stock highlights overvaluation risks despite a high 7.76% dividend yield.
CoStar Group's shares dip amid share price weakness, but analysts spotlight undervaluation and robust growth ahead.
- Quantum Capital Management sold 23.5% of its CSGP stake in Q2, part of ongoing institutional adjustments, while smaller funds initiated positions.
- Recent analysis pegs CSGP as 26% undervalued at $68 closing price versus $91.94 fair value, banking on 16.9% annual revenue growth and margins surging to 18.6% in three years via Homes.com expansion.
- November reports show strengthening national home price appreciation and multifamily rent growth, bolstering CoStar's core data services amid a softening stock performance.
Analysts Pile On with Strong Sell Consensus as Telefónica Faces Renewed Pressure.
- Bank of America reaffirmed 'underperform' on December 4 with a $3.83 target, signaling limited upside potential in core markets.
- Weiss Ratings stuck with 'sell (d)' this week, while Citigroup's recent neutral downgrade underscores profitability challenges.
- Trading at a 634% premium to Morningstar's $1.80 fair value, the stock highlights overvaluation risks despite a high 7.76% dividend yield.
Which Baskets Do They Appear In?
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Explore BasketTrust In Numbers: The Private Data Advantage
The firing of the U.S. Labor Statistics chief has undermined trust in the integrity of government economic reporting. This creates a potential shift towards private data and analytics firms as more reliable sources of crucial market information.
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Explore BasketData Landlords
These companies own the critical information that powers modern business and innovation. Like digital landlords, they lease access to invaluable data streams that others simply can't replicate, creating powerful competitive advantages and consistent revenue streams.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
Zillow Redfin Competitors | Market Disruption
The Federal Trade Commission is suing Zillow and Redfin, alleging their rental listing deal violates antitrust laws. This legal challenge could disrupt the online real estate market, creating opportunities for competing platforms to capture market share.
Published: October 1, 2025
Explore BasketTrust In Numbers: The Private Data Advantage
The firing of the U.S. Labor Statistics chief has undermined trust in the integrity of government economic reporting. This creates a potential shift towards private data and analytics firms as more reliable sources of crucial market information.
Published: August 3, 2025
Explore BasketData Landlords
These companies own the critical information that powers modern business and innovation. Like digital landlords, they lease access to invaluable data streams that others simply can't replicate, creating powerful competitive advantages and consistent revenue streams.
Published: June 17, 2025
Explore BasketInvestment Analysis
CoStar Group
CSGP
Pros
- CoStar Group has demonstrated 57 consecutive quarters of double-digit revenue growth, with Q2 2025 revenues increasing 15.3% year over year to $781.3 million.
- The company shows strong market position with a solid market capitalization around $30 billion and effective debt management evidenced by a low debt-to-equity ratio (~11.5%).
- Consensus among analysts is predominantly positive, with 13 analysts rating the stock as a 'Buy' and an average price target implying over 20% potential upside.
Considerations
- CoStar Group exhibits a very high price-to-earnings (P/E) ratio, suggesting potential overvaluation relative to its current earnings and possibly increasing downside risk.
- Despite strong revenue growth, the company’s net profit margin is low (around 0.66%), indicating tight profitability which may constrain earnings expansion.
- Recent trading volatility and mixed analyst ratings, including one 'Sell' rating, imply some uncertainty and could affect stock price stability.
Telefónica
TEF
Pros
- Telefónica, S.A. operates across diverse geographies including Europe and Latin America, providing broad telecom services and thus benefits from geographic diversification.
- The company showed revenue growth of approximately 1.64% in 2024 to over €42 billion, demonstrating resilience in its core business amid competitive markets.
- Offers a relatively high dividend yield of about 6.5%, which may be attractive for income-focused investors.
Considerations
- Telefónica reported significant net losses in the trailing twelve months (around -€2.6 billion), negatively impacting profitability and shareholder equity.
- The company’s earnings per share (EPS) is negative, reflecting ongoing challenges in turning profitable despite revenue scale.
- Shares display low volatility (beta ~0.56) which may indicate limited growth potential or investor enthusiasm compared to more dynamic peers.
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