CSGP vs Z

For growth investors, CoStar Group, Inc.

(CSGP) is the stronger pick with 18. 7% revenue growth year-over-year, versus 15. 5% for Zillow Group, Inc. Class C (Z). Zillow Group, Inc. Class C (Z) offers the better valuation at 483. 8x trailing P/E (19. 7x forward), making it the more compelling value choice. Analysts rate CoStar Group, Inc. (CSGP) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Zillow Group, Inc.

Class C (Z) is the cheapest at 483. 8x versus CoStar Group, Inc. at 2102. 4x. On forward P/E, Zillow Group, Inc. Class C is actually cheaper at 19. 7x.

Over the past 5 years, CoStar Group, Inc.

(CSGP) delivered a total return of -58. 2%, compared to -61. 7% for Zillow Group, Inc. Class C (Z). Over 10 years, the gap is even starker: CSGP returned +80. 5% versus Z's +62. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CoStar Group, Inc.

(CSGP) is the lower-risk stock at 0. 80β versus Zillow Group, Inc. Class C's 1. 32β — meaning Z is approximately 65% more volatile than CSGP relative to the S&P 500. On balance sheet safety, Zillow Group, Inc. Class C (Z) carries a lower debt/equity ratio of 2% versus 14% for CoStar Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), CoStar Group, Inc.

(CSGP) is pulling ahead at 18. 7% versus 15. 5% for Zillow Group, Inc. Class C (Z). On earnings-per-share growth, the picture is similar: Zillow Group, Inc. Class C grew EPS 118. 8% year-over-year, compared to -95. 1% for CoStar Group, Inc.. Over a 3-year CAGR, CSGP leads at 14. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Zillow Group, Inc.

Class C (Z) is the more profitable company, earning 0. 9% net margin versus 0. 2% for CoStar Group, Inc. — meaning it keeps 0. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: Z leads at -1. 3% versus -2. 2% for CSGP. At the gross margin level — before operating expenses — CSGP leads at 75. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Zillow Group, Inc.

Class C (Z) trades at 19. 7x forward P/E versus 25. 8x for CoStar Group, Inc. — 6. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for Z: 83. 7% to $80. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, CoStar Group, Inc.

(CSGP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 80)). Both have compounded well over 10 years (CSGP: +80. 5%, Z: +62. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (CSGP (Real Estate) and Z (Communication Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.