Analyzing CoStar Group (NASDAQ:CSGP) and Serve Robotics (NASDAQ:SERV)

CoStar Group (NASDAQ:CSGP) and Serve Robotics (NASDAQ:SERV) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Risk and Volatility

CoStar Group has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Serve Robotics has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares CoStar Group and Serve Robotics’ 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%
Serve Robotics	-2,639.98%	-47.31%	-44.89%

Institutional and Insider Ownership

96.6% of CoStar Group shares are owned by institutional investors. 1.2% of CoStar Group shares are owned by insiders. Comparatively, 5.0% of Serve Robotics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CoStar Group and Serve Robotics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoStar Group	$3.25 billion	3.82	$7.00 million	$0.06	506.22
Serve Robotics	$5.20 million	97.63	-$101.36 million	($2.01)	-3.26

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

Analyst Ratings

This is a summary of current ratings and target prices for CoStar Group and Serve Robotics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoStar Group	2	5	13	0	2.55
Serve Robotics	1	1	7	0	2.67

CoStar Group presently has a consensus price target of $55.33, suggesting a potential upside of 82.18%. Serve Robotics has a consensus price target of $17.51, suggesting a potential upside of 167.19%. Given Serve Robotics’ stronger consensus rating and higher possible upside, analysts plainly believe Serve Robotics is more favorable than CoStar Group.

Summary

CoStar Group beats Serve Robotics 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 Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.