Liquidity Services (NASDAQ:LQDT) and CoStar Group (NASDAQ:CSGP) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
This is a summary of recent ratings and target prices for Liquidity Services and CoStar Group, as reported by MarketBeat.com.
Liquidity Services presently has a consensus price target of $10.00, indicating a potential upside of 31.93%. CoStar Group has a consensus price target of $457.75, indicating a potential upside of 29.54%. Given Liquidity Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Liquidity Services is more favorable than CoStar Group.
Insider & Institutional Ownership
65.2% of Liquidity Services shares are held by institutional investors. Comparatively, 95.5% of CoStar Group shares are held by institutional investors. 22.1% of Liquidity Services shares are held by company insiders. Comparatively, 2.5% of CoStar Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Liquidity Services has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, CoStar Group has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.
This table compares Liquidity Services and CoStar Group’s net margins, return on equity and return on assets.
Earnings & Valuation
This table compares Liquidity Services and CoStar Group’s revenue, earnings per share and valuation.
CoStar Group has higher revenue and earnings than Liquidity Services. Liquidity Services is trading at a lower price-to-earnings ratio than CoStar Group, indicating that it is currently the more affordable of the two stocks.
CoStar Group beats Liquidity Services on 11 of the 14 factors compared between the two stocks.
About Liquidity Services
Liquidity Services, Inc. provides e-commerce marketplace that enable buyers and sellers to transact in an automated environment offering approximately 500 product categories. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and capital assets; govdeals.com that enables local and state government entities, including city, county, and state agencies to sell surplus and salvage assets, as well as offers a suite of services that includes asset sales and marketing, and seller self-service; and auctiondeals.com, a self-service solution, which enable sellers list their own assets, and enable commercial businesses to sell surplus and salvage assets. It also operates networkintl.com, which enables corporations to sell idle, surplus, and scrap equipment in the oil and gas, petrochemical, and power generation industries; go-dove.com marketplace for corporations located in the United States, Europe, and Asia to sell manufacturing surplus and salvage capital assets, and scrap material; secondipity.com that provides consumers a source of products through donating a portion of the proceeds of sale to charity; and machinio.com, a search engine for used machinery and equipment. The company's marketplaces provide professional buyers access to supply of new, surplus, and scrap assets presented with digital images and other relevant product information; and enable corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. It offers approximately 500 product categories in industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment, and specialty equipment. The company was founded in 1999 and is headquartered in Bethesda, Maryland.
About CoStar Group
CoStar Group, Inc. provides information, analytics, and online marketplace to the commercial real estate industry in North America and internationally. The company offers CoStar Property Professional service that provides inventory of office, industrial, retail, and multifamily properties and land. It also provides CoStar COMPS Professional, which covers comparable commercial real estate sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStarGo, an iPad and Android application; CoStar Lease Comps, an integrated solution that captures, manages, maintains, and analyzes lease data; CoStar Advertising to market a space for lease or a property for sale; and CoStar Portfolio Strategy to meet the research needs of commercial real estate owners, investors, lenders, and government regulators. In addition, the company offers CoStar Investment Analysis Portfolio Maximizer, CoStar Investment Analysis Request, CoStar Real Estate Manager Corporate Edition, and CoStar Real Estate Manager Retail Edition that are real estate management software solutions; CoStar Private Sale Network, which provides clients with custom-designed and branded Websites; and CoStar Brokerage Applications. Further, it offers LoopNet Premium Lister and LoopNet Power Listings for commercial real estate professionals and other customers to market their listings; LoopNet Premium Searcher for members searching for commercial real estate; LoopLink, an online real estate marketing and database services suite; apartment marketing sites, including Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, and The Screening Pros; LandsofAmerica, LandAndFarm, and LandWatch that are online marketplaces for rural land for sale; and BizBuySell and BizQuest that are online marketplaces for operating businesses for sale. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.