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

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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 Capitalization13.22 billion USD37.39 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 Return4.39%0.32%
13-Week Price Return7.44%14.74%
26-Week Price Return-17.81%19.97%
52-Week Price Return-31.76%17.81%
Month-to-Date Return2.41%-7.29%
Year-to-Date Return-19.76%23.27%
10-Day Avg. Volume1.73M3.12M
3-Month Avg. Volume1.75M3.07M
3-Month Volatility31.33%25.65%
Beta1.330.90

Profitability

Return on Equity (TTM)

ARE

-0.06%

Office REITs Industry

Max
9.47%
Q3
6.07%
Median
3.22%
Q1
0.83%
Min
-0.08%

ARE has a negative Return on Equity of -0.06%. 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

1.29%

Real Estate Management & Development Industry

Max
14.65%
Q3
8.92%
Median
3.63%
Q1
1.63%
Min
-8.05%

CSGP’s Return on Equity of 1.29% 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

-0.32%

Office REITs Industry

Max
74.75%
Q3
44.46%
Median
31.39%
Q1
5.85%
Min
-0.35%

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

CSGP

3.57%

Real Estate Management & Development Industry

Max
57.16%
Q3
24.60%
Median
9.48%
Q1
2.61%
Min
-26.61%

CSGP’s Net Profit Margin of 3.57% is aligned with the median group of its peers in the Real Estate Management & Development industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

12.67%

Office REITs Industry

Max
91.62%
Q3
51.67%
Median
42.78%
Q1
23.56%
Min
14.93%

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

CSGP

-0.22%

Real Estate Management & Development Industry

Max
92.29%
Q3
43.61%
Median
20.96%
Q1
6.44%
Min
-48.90%

CSGP has a negative Operating Profit Margin of -0.22%. 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)-0.06%1.29%
Return on Assets (TTM)-0.03%1.06%
Net Profit Margin (TTM)-0.32%3.57%
Operating Profit Margin (TTM)12.67%-0.22%
Gross Profit Margin (TTM)71.25%79.33%

Financial Strength

Current Ratio (MRQ)

ARE

0.40

Office REITs Industry

Max
1.49
Q3
1.22
Median
0.67
Q1
0.44
Min
0.14

ARE’s Current Ratio of 0.40 falls into the lower quartile for the Office REITs industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CSGP

5.83

Real Estate Management & Development Industry

Max
3.73
Q3
2.22
Median
1.42
Q1
1.03
Min
0.04

CSGP’s Current Ratio of 5.83 is exceptionally high, placing it well outside the typical range for the Real Estate Management & Development industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

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

0.77

Office REITs Industry

Max
1.62
Q3
1.32
Median
0.87
Q1
0.73
Min
0.42

ARE’s Debt-to-Equity Ratio of 0.77 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
2.62
Q3
1.30
Median
0.84
Q1
0.39
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
1.66
Q1
1.16
Min
0.14

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
23.14
Q3
12.97
Median
3.68
Q1
1.29
Min
-4.45

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)0.405.83
Quick Ratio (MRQ)0.405.72
Debt-to-Equity Ratio (MRQ)0.770.12
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

6.74%

Office REITs Industry

Max
6.88%
Q3
5.94%
Median
4.58%
Q1
3.82%
Min
1.22%

With a Dividend Yield of 6.74%, 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
6.79%
Q3
3.51%
Median
2.22%
Q1
0.52%
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
231.12%
Q3
180.65%
Median
94.76%
Q1
87.60%
Min
1.02%

ARE’s Dividend Payout Ratio of 174.29% is within the typical range for the Office REITs industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CSGP

0.00%

Real Estate Management & Development Industry

Max
242.45%
Q3
106.13%
Median
55.27%
Q1
14.97%
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)6.74%0.00%
Dividend Payout Ratio (TTM)174.29%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ARE

--

Office REITs Industry

Max
48.29
Q3
44.14
Median
23.60
Q1
18.77
Min
6.08

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

CSGP

362.01

Real Estate Management & Development Industry

Max
41.09
Q3
23.50
Median
17.29
Q1
11.14
Min
6.36

At 362.01, 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

4.21

Office REITs Industry

Max
14.09
Q3
9.33
Median
6.96
Q1
4.25
Min
2.65

In the lower quartile for the Office REITs industry, ARE’s P/S Ratio of 4.21 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

12.94

Real Estate Management & Development Industry

Max
12.22
Q3
5.64
Median
2.53
Q1
0.98
Min
0.01

With a P/S Ratio of 12.94, CSGP trades at a valuation that eclipses even the highest in the Real Estate Management & Development industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

0.73

Office REITs Industry

Max
2.06
Q3
1.34
Median
1.02
Q1
0.68
Min
0.57

ARE’s P/B Ratio of 0.73 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

3.94

Real Estate Management & Development Industry

Max
2.36
Q3
1.18
Median
0.75
Q1
0.35
Min
0.06

At 3.94, 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)--362.01
Price-to-Sales Ratio (TTM)4.2112.94
Price-to-Book Ratio (MRQ)0.733.94
Price-to-Free Cash Flow Ratio (TTM)539.861,278.71