Contrasting DST Systems (DST) and GoDaddy (GDDY)
DST Systems (NYSE: DST) and GoDaddy (NYSE:GDDY) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
This table compares DST Systems and GoDaddy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
DST Systems pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. GoDaddy does not pay a dividend. DST Systems pays out 10.6% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for DST Systems and GoDaddy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DST Systems presently has a consensus price target of $68.33, suggesting a potential upside of 13.91%. GoDaddy has a consensus price target of $50.00, suggesting a potential downside of 2.08%. Given DST Systems’ higher probable upside, equities analysts clearly believe DST Systems is more favorable than GoDaddy.
Insider & Institutional Ownership
85.4% of DST Systems shares are held by institutional investors. Comparatively, 79.8% of GoDaddy shares are held by institutional investors. 1.8% of DST Systems shares are held by insiders. Comparatively, 22.7% of GoDaddy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
DST Systems has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, GoDaddy has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Earnings & Valuation
This table compares DST Systems and GoDaddy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|DST Systems||$1.56 billion||2.32||$427.30 million||$6.78||8.85|
|GoDaddy||$1.85 billion||4.61||-$16.50 million||$0.26||196.39|
DST Systems has higher revenue, but lower earnings than GoDaddy. DST Systems is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.
DST Systems beats GoDaddy on 9 of the 16 factors compared between the two stocks.
About DST Systems
DST Systems, Inc. (DST) is a provider of technology-based information processing and servicing solutions. The Company offers its solutions through data management, business processing and customer communications solutions to clients within the asset management, brokerage, retirement and healthcare markets. The Company operates through two segments: Financial Services and Healthcare Services. Through the Financial Services segment, DST provides investor, investment, advisor/intermediary and asset distribution services to companies within the financial services industry. The Healthcare Services segment uses the Company’s software applications to provide healthcare organizations a range of medical and pharmacy benefit solutions to aid their information processing, quality of care, cost management and payment integrity needs. Its investments in equity securities, private equity investments, real estate and certain financial interests are aggregated into an Investments and Other segment.
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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