Xometry (NASDAQ:XMTR) vs. CoStar Group (NASDAQ:CSGP) Critical Review

Xometry (NASDAQ:XMTR) and CoStar Group (NASDAQ:CSGP) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xometry	-9.72%	-10.16%	-4.74%
CoStar Group	6.57%	3.53%	2.88%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$463.41 million	3.55	-$67.47 million	($1.05)	-31.65
CoStar Group	$2.46 billion	12.33	$374.70 million	$0.44	167.84

CoStar Group has higher revenue and earnings than Xometry. Xometry 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 Recommendations

This is a summary of current recommendations for Xometry and CoStar Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	2	6	0	2.56
CoStar Group	0	3	10	0	2.77

Xometry currently has a consensus price target of $33.33, indicating a potential upside of 0.31%. CoStar Group has a consensus price target of $92.92, indicating a potential upside of 25.82%. Given CoStar Group’s stronger consensus rating and higher possible upside, analysts plainly believe CoStar Group is more favorable than Xometry.

Institutional and Insider Ownership

97.3% of Xometry shares are owned by institutional investors. Comparatively, 96.6% of CoStar Group shares are owned by institutional investors. 16.8% of Xometry shares are owned by company insiders. Comparatively, 1.6% of CoStar Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Xometry has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, CoStar Group has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Summary

CoStar Group beats Xometry on 12 of the 14 factors compared between the two stocks.

About Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, 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.