CoStar Group vs Zillow
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KIRA’s take AI analyst
I put CoStar Group and Zillow side by side, using each one’s latest annual report. Here is what stands out:
- CoStar Group is the larger business, with $3.2B of revenue in fiscal 2025 against $2.6B for Zillow.
- CoStar Group grew revenue faster (18.7%, against 15.5%).
- Zillow kept more of each dollar of sales as operating profit (−1.3% operating margin, against −2.2%).
- Zillow turned more of its sales into free cash flow (9.1% FCF margin, against 3.8%).
- Investors pay more for each dollar of CoStar Group’s earnings: a P/E of 187.2x against 153.3x for Zillow.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
CoStar Group
CSGP
5/11
Revenue growth5-year growthGross marginReturn on capitalShare count change
Zillow
ZG
6/11
Operating marginNet marginFCF marginReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | CSGP FY25 | ZG FY25 |
|---|---|---|
| Size | ||
| Market cap | $13.6B | $7.7B |
| Revenue | $3.2B | $2.6B |
| Free cash flow | $123M | $235M |
| Net income | $7.0M | $23.0M |
| Growth | ||
| Revenue growth | 18.7% | 15.5% |
| 5-year growth | 14.4% | 9.7% |
| Share count change | 3.2% | 8.6% |
| Profitability | ||
| Gross margin | 78.9% | 74.1% |
| Operating margin | −2.2% | −1.3% |
| Net margin | 0.2% | 0.9% |
| FCF margin | 3.8% | 9.1% |
| Return on capital | −0.6% | −0.9% |
| Return on equity | 0.1% | 0.5% |
| Balance sheet | ||
| Net debt | −$629M | −$1.3B |
| Net debt / EBITDA | −3.3x | −5.6x |
| Dividends and buybacks | $500M | $670M |
| Valuation & quality | ||
| P/E | 187.2x | 153.3x |
| Piotroski F-score | 5 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.