Head-To-Head Contrast: CoStar Group (NASDAQ:CSGP) versus BigBear.ai (NYSE:BBAI)

BigBear.ai (NYSE:BBAI) and CoStar Group (NASDAQ:CSGP) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for BigBear.ai and CoStar Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	2	2	0	2.20
CoStar Group	2	5	12	1	2.60

BigBear.ai currently has a consensus target price of $6.33, suggesting a potential upside of 1.41%. CoStar Group has a consensus target price of $93.38, suggesting a potential upside of 43.16%. Given CoStar Group’s stronger consensus rating and higher possible upside, analysts plainly believe CoStar Group is more favorable than BigBear.ai.

Earnings and Valuation

This table compares BigBear.ai and CoStar Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$158.24 million	17.23	-$295.55 million	($1.42)	-4.40
CoStar Group	$2.74 billion	10.10	$138.70 million	$0.05	1,304.60

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

Institutional & Insider Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 96.6% of CoStar Group shares are held by institutional investors. 0.5% of BigBear.ai shares are held by company insiders. Comparatively, 1.1% of CoStar Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

BigBear.ai has a beta of 3.44, suggesting that its share price is 244% more volatile than the S&P 500. Comparatively, CoStar Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-274.70%	-26.11%	-12.37%
CoStar Group	0.66%	2.45%	1.99%

Summary

CoStar Group beats BigBear.ai on 13 of the 15 factors compared between the two stocks.

About BigBear.ai

BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services. It serves nation defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, travel, entertainment, and tourism sectors. The company is headquartered in Columbia, Maryland.

About CoStar Group

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. It also provides Leasing, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.