Seek Returns logo

ARE vs. CSGP: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ARE and CSGP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

A key difference in structure is that ARE is a Real Estate Investment Trust (REIT), a company that primarily invests in income-generating real estate, whereas CSGP is a conventional stock.

SymbolARECSGP
Company NameAlexandria Real Estate Equities, Inc.CoStar Group, Inc.
CountryUnited StatesUnited States
GICS SectorReal EstateReal Estate
GICS IndustryOffice REITsReal Estate Management & Development
Market Capitalization8.98 billion USD28.88 billion USD
ExchangeNYSENasdaqGS
Listing DateMay 28, 1997July 1, 1998
Security TypeREITCommon Stock

Historical Performance

This chart compares the performance of ARE and CSGP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ARE vs. CSGP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARECSGP
5-Day Price Return-3.63%1.22%
13-Week Price Return-31.28%-24.10%
26-Week Price Return-27.78%-9.48%
52-Week Price Return-52.04%-10.19%
Month-to-Date Return-10.19%-1.10%
Year-to-Date Return-46.40%-4.94%
10-Day Avg. Volume2.69M4.58M
3-Month Avg. Volume1.95M3.24M
3-Month Volatility49.66%29.52%
Beta1.330.84

Profitability

Return on Equity (TTM)

ARE

-2.38%

Office REITs Industry

Max
10.01%
Q3
6.77%
Median
5.21%
Q1
1.77%
Min
-3.82%

ARE has a negative Return on Equity of -2.38%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

CSGP

0.24%

Real Estate Management & Development Industry

Max
19.92%
Q3
9.68%
Median
3.86%
Q1
0.61%
Min
-8.89%

CSGP’s Return on Equity of 0.24% is in the lower quartile for the Real Estate Management & Development industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARE vs. CSGP: A comparison of their Return on Equity (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Net Profit Margin (TTM)

ARE

-12.89%

Office REITs Industry

Max
85.58%
Q3
47.99%
Median
43.80%
Q1
13.41%
Min
-12.89%

In the Office REITs industry, Net Profit Margin is often not the primary profitability metric.

CSGP

0.66%

Real Estate Management & Development Industry

Max
69.53%
Q3
31.03%
Median
9.23%
Q1
2.36%
Min
-23.71%

Falling into the lower quartile for the Real Estate Management & Development industry, CSGP’s Net Profit Margin of 0.66% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ARE vs. CSGP: A comparison of their Net Profit Margin (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Operating Profit Margin (TTM)

ARE

0.28%

Office REITs Industry

Max
115.21%
Q3
75.07%
Median
39.18%
Q1
22.39%
Min
0.28%

In the Office REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.

CSGP

-2.65%

Real Estate Management & Development Industry

Max
114.22%
Q3
51.67%
Median
24.95%
Q1
7.35%
Min
-44.62%

CSGP has a negative Operating Profit Margin of -2.65%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ARE vs. CSGP: A comparison of their Operating Profit Margin (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Profitability at a Glance

SymbolARECSGP
Return on Equity (TTM)-2.38%0.24%
Return on Assets (TTM)-1.09%0.20%
Net Profit Margin (TTM)-12.89%0.66%
Operating Profit Margin (TTM)0.28%-2.65%
Gross Profit Margin (TTM)70.81%79.25%

Financial Strength

Current Ratio (MRQ)

ARE

0.41

Office REITs Industry

Max
1.67
Q3
1.07
Median
0.62
Q1
0.40
Min
0.14

ARE’s Current Ratio of 0.41 aligns with the median group of the Office REITs industry, indicating that its short-term liquidity is in line with its sector peers.

CSGP

3.12

Real Estate Management & Development Industry

Max
4.40
Q3
2.38
Median
1.52
Q1
1.02
Min
0.06

CSGP’s Current Ratio of 3.12 is in the upper quartile for the Real Estate Management & Development industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ARE vs. CSGP: A comparison of their Current Ratio (MRQ) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARE

0.82

Office REITs Industry

Max
1.62
Q3
1.36
Median
0.87
Q1
0.79
Min
0.44

ARE’s Debt-to-Equity Ratio of 0.82 is typical for the Office REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CSGP

0.12

Real Estate Management & Development Industry

Max
2.60
Q3
1.33
Median
0.82
Q1
0.40
Min
0.00

Falling into the lower quartile for the Real Estate Management & Development industry, CSGP’s Debt-to-Equity Ratio of 0.12 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ARE vs. CSGP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Interest Coverage Ratio (TTM)

ARE

2.75

Office REITs Industry

Max
3.98
Q3
3.37
Median
2.01
Q1
1.33
Min
0.20

ARE’s Interest Coverage Ratio of 2.75 is positioned comfortably within the norm for the Office REITs industry, indicating a standard and healthy capacity to cover its interest payments.

CSGP

14.65

Real Estate Management & Development Industry

Max
30.61
Q3
14.23
Median
3.84
Q1
1.74
Min
-1.97

CSGP’s Interest Coverage Ratio of 14.65 is in the upper quartile for the Real Estate Management & Development industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ARE vs. CSGP: A comparison of their Interest Coverage Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Financial Strength at a Glance

SymbolARECSGP
Current Ratio (MRQ)0.413.12
Quick Ratio (MRQ)0.412.97
Debt-to-Equity Ratio (MRQ)0.820.12
Interest Coverage Ratio (TTM)2.7514.65

Growth

Revenue Growth

ARE vs. CSGP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARE vs. CSGP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARE

10.09%

Office REITs Industry

Max
10.09%
Q3
6.32%
Median
5.45%
Q1
3.78%
Min
2.02%

With a Dividend Yield of 10.09%, ARE offers a more attractive income stream than most of its peers in the Office REITs industry, signaling a strong commitment to shareholder returns.

CSGP

0.00%

Real Estate Management & Development Industry

Max
6.29%
Q3
3.64%
Median
2.24%
Q1
0.56%
Min
0.00%

CSGP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ARE vs. CSGP: A comparison of their Dividend Yield (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Dividend Payout Ratio (TTM)

ARE

174.29%

Office REITs Industry

Max
277.06%
Q3
172.99%
Median
93.19%
Q1
80.70%
Min
22.44%

ARE’s Dividend Payout Ratio of 174.29% is in the upper quartile for the Office REITs industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

CSGP

0.00%

Real Estate Management & Development Industry

Max
290.47%
Q3
140.89%
Median
56.37%
Q1
29.04%
Min
0.00%

CSGP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ARE vs. CSGP: A comparison of their Dividend Payout Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Dividend at a Glance

SymbolARECSGP
Dividend Yield (TTM)10.09%0.00%
Dividend Payout Ratio (TTM)174.29%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ARE

--

Office REITs Industry

Max
75.52
Q3
39.54
Median
24.79
Q1
14.78
Min
5.56

The P/E Ratio is often not the primary metric for valuation in the Office REITs industry.

CSGP

1,422.10

Real Estate Management & Development Industry

Max
56.78
Q3
29.72
Median
15.84
Q1
10.97
Min
3.65

At 1,422.10, CSGP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Real Estate Management & Development industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARE vs. CSGP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Price-to-Sales Ratio (TTM)

ARE

2.83

Office REITs Industry

Max
15.44
Q3
9.11
Median
6.86
Q1
3.90
Min
1.99

In the lower quartile for the Office REITs industry, ARE’s P/S Ratio of 2.83 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

CSGP

9.45

Real Estate Management & Development Industry

Max
11.86
Q3
5.68
Median
2.97
Q1
1.01
Min
0.05

CSGP’s P/S Ratio of 9.45 is in the upper echelon for the Real Estate Management & Development industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ARE vs. CSGP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Price-to-Book Ratio (MRQ)

ARE

0.87

Office REITs Industry

Max
2.35
Q3
1.42
Median
1.05
Q1
0.72
Min
0.65

ARE’s P/B Ratio of 0.87 is within the conventional range for the Office REITs industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CSGP

4.15

Real Estate Management & Development Industry

Max
2.48
Q3
1.23
Median
0.74
Q1
0.39
Min
0.06

At 4.15, CSGP’s P/B Ratio is at an extreme premium to the Real Estate Management & Development industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ARE vs. CSGP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Valuation at a Glance

SymbolARECSGP
Price-to-Earnings Ratio (TTM)--1,422.10
Price-to-Sales Ratio (TTM)2.839.45
Price-to-Book Ratio (MRQ)0.874.15
Price-to-Free Cash Flow Ratio (TTM)360.39978.60