CoStar Group (NASDAQ:CSGP) and Endava (NYSE:DAVA) Head-To-Head Analysis

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

Valuation & Earnings

This table compares CoStar Group and Endava”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoStar Group	$3.25 billion	3.60	$7.00 million	$0.06	477.33
Endava	$999.23 million	0.15	$27.45 million	($10.51)	-0.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CoStar Group	0.74%	2.90%	2.32%
Endava	-57.01%	2.58%	1.45%

Institutional and Insider Ownership

96.6% of CoStar Group shares are owned by institutional investors. Comparatively, 62.2% of Endava shares are owned by institutional investors. 1.2% of CoStar Group shares are owned by company insiders. Comparatively, 18.8% of Endava shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

CoStar Group has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Endava has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CoStar Group and Endava, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoStar Group	2	5	13	0	2.55
Endava	3	4	2	0	1.89

CoStar Group presently has a consensus price target of $54.50, indicating a potential upside of 90.29%. Endava has a consensus price target of $7.43, indicating a potential upside of 185.06%. Given Endava’s higher probable upside, analysts clearly believe Endava is more favorable than CoStar Group.

Summary

CoStar Group beats Endava on 10 of the 14 factors compared between the two stocks.

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.

About Endava

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.