CoStar Group (NASDAQ:CSGP) vs. Medalist Diversified REIT (NASDAQ:MDRR) Financial Analysis

Medalist Diversified REIT (NASDAQ:MDRRGet Free Report) and CoStar Group (NASDAQ:CSGPGet Free Report) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Institutional and Insider Ownership

17.4% of Medalist Diversified REIT shares are owned by institutional investors. Comparatively, 96.6% of CoStar Group shares are owned by institutional investors. 77.6% of Medalist Diversified REIT shares are owned by company insiders. Comparatively, 1.2% of CoStar Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Medalist Diversified REIT and CoStar Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medalist Diversified REIT 0 1 0 0 2.00
CoStar Group 2 9 9 0 2.35

CoStar Group has a consensus price target of $40.11, indicating a potential upside of 29.75%. Given CoStar Group’s stronger consensus rating and higher probable upside, analysts plainly believe CoStar Group is more favorable than Medalist Diversified REIT.

Valuation and Earnings

This table compares Medalist Diversified REIT and CoStar Group”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medalist Diversified REIT $10.40 million 1.91 -$2.39 million $3.83 3.19
CoStar Group $3.56 billion 3.52 $7.00 million $0.19 162.68

CoStar Group has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT 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 Medalist Diversified REIT and CoStar Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medalist Diversified REIT 80.24% -15.18% -6.46%
CoStar Group 2.08% 3.74% 2.96%

Risk & Volatility

Medalist Diversified REIT has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, CoStar Group has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Summary

CoStar Group beats Medalist Diversified REIT on 11 of the 14 factors compared between the two stocks.

About Medalist Diversified REIT

(Get Free Report)

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

About CoStar Group

(Get Free Report)

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.

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