CoStar GroupWipro

CoStar Group vs Wipro

This page compares CoStar Group Inc. and Wipro Ltd. in terms of business models, financial performance, and market context. It presents how each company operates within its sector and their market pos...

Why It's Moving

CoStar Group

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.
Sentiment:
🐃Bullish
Wipro

Wipro snaps up Harman’s DTS unit, pushing deeper into connected services and software-enabled products.

  • Acquisition closed: Wipro announced completion of its 100% acquisition of DTS from Harman on December 2, moving the deal from announcement to closed status and signaling regulatory/closing conditions were satisfied.[1][6]
  • Strategic implication: DTS brings established connected‑services and embedded software expertise, which could accelerate Wipro’s shift from pure IT services toward higher‑value product engineering, connected‑device software and recurring service models — areas investors prize for margin expansion and stickier revenue.[1][6]
  • Institutional interest: A recent 13F filing showed American Century increased its Wipro stake in the period reported, a sign that some asset managers are adding exposure amid the company’s strategic M&A activity and repositioning in engineering and connected solutions.[2]
Sentiment:
🐃Bullish

Which Baskets Do They Appear In?

Zillow Redfin Competitors | Market Disruption

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

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Trust In Numbers: The Private Data Advantage

Trust 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

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Data Landlords

Data 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

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Investment Analysis

Pros

  • CoStar Group reported strong Q3 2025 revenue growth of 20% year-over-year with adjusted EBITDA exceeding guidance, indicating operational efficiency improvements.
  • The company raised full-year 2025 adjusted EBITDA guidance by $40 million at midpoint, signalling confidence in profitability expansion.
  • Analysts maintain a consensus rating of 'Buy' with an average price target implying over 20% potential upside in the next year.

Considerations

  • CoStar’s forward price-to-earnings ratio is very high (around 58), and price-to-sales ratio exceeds industry average significantly, suggesting elevated valuation risk.
  • Q4 2025 earnings guidance is slightly below consensus estimates, indicating potential execution risks or pressure on near-term profitability.
  • Market sentiment shows some recent share price weakness, reflecting investor caution amid valuation and real estate market uncertainties.

Pros

  • Wipro exhibits a strong financial position with a quick ratio above 2, indicating good liquidity to cover short-term liabilities.
  • The company maintains solid profitability metrics, including a return on assets above 10%, reflecting efficient asset utilization.
  • Wipro benefits from stable demand in IT services amid ongoing digital transformation trends globally, supporting revenue growth.

Considerations

  • Wipro faces competitive pressure in IT services from both global majors and emerging market players, which can compress margins.
  • Geopolitical and macroeconomic uncertainties may impact outsourcing demand and pricing, creating revenue growth headwinds.
  • Dependence on performance in key markets like the US and Europe exposes Wipro to regulatory and currency fluctuation risks.

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