GoDaddy (NYSE: GDDY) is one of 195 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare GoDaddy to similar companies based on the strength of its earnings, institutional ownership, risk, dividends, profitability, analyst recommendations and valuation.

Volatility and Risk

GoDaddy has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, GoDaddy’s rivals have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares GoDaddy and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
GoDaddy $1.85 billion -$16.50 million 186.81
GoDaddy Competitors $2.72 billion $280.23 million 251.41

GoDaddy’s rivals have higher revenue and earnings than GoDaddy. GoDaddy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GoDaddy and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GoDaddy 0 3 11 0 2.79
GoDaddy Competitors 710 4589 7325 165 2.54

GoDaddy currently has a consensus price target of $50.00, suggesting a potential upside of 2.94%. As a group, “IT Services & Consulting” companies have a potential upside of 2.45%. Given GoDaddy’s stronger consensus rating and higher possible upside, equities analysts clearly believe GoDaddy is more favorable than its rivals.

Profitability

This table compares GoDaddy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GoDaddy 2.34% 7.89% 0.97%
GoDaddy Competitors -15.04% -247.58% -3.22%

Insider & Institutional Ownership

78.9% of GoDaddy shares are owned by institutional investors. Comparatively, 62.8% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 22.7% of GoDaddy shares are owned by insiders. Comparatively, 16.1% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

GoDaddy beats its rivals on 8 of the 13 factors compared.

GoDaddy Company Profile

GoDaddy Inc. is a technology provider to small businesses, Web design professionals and individuals. The Company delivers cloud-based products and personalized customer care. It operates a domain marketplace, where its customers can find the digital real estate that matches their idea. It provides Website building, hosting and security tools to help customers construct and protect online presence. It provides applications that enable connecting to customers and managing businesses. The Company provides search, discovery and recommendation tools, as well as a selection of domain name for ventures. It provides productivity tools, such as domain-specific e-mail, online storage, invoicing, bookkeeping and payment solutions to run ventures, as well as marketing products. The Company’s products, including GoCentral enable to build a Website or online store for both desktop and mobile. Its products are powered by a cloud platform and enable its customers to get found online.

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