Head-To-Head Survey: VerifyMe (NASDAQ:VRME) versus GoDaddy (NYSE:GDDY)

GoDaddy (NYSE:GDDY – Get Rating) and VerifyMe (NASDAQ:VRME – Get Rating) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares GoDaddy and VerifyMe’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoDaddy	$4.09 billion	2.71	$352.20 million	$2.09	34.28
VerifyMe	$19.58 million	0.66	-$14.40 million	($1.75)	-0.79

GoDaddy has higher revenue and earnings than VerifyMe. VerifyMe is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

GoDaddy has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, VerifyMe has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Institutional & Insider Ownership

97.3% of GoDaddy shares are held by institutional investors. Comparatively, 5.7% of VerifyMe shares are held by institutional investors. 0.4% of GoDaddy shares are held by insiders. Comparatively, 16.9% of VerifyMe shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares GoDaddy and VerifyMe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoDaddy	8.03%	-95.00%	4.76%
VerifyMe	-58.16%	-21.10%	-14.87%

Analyst Ratings

This is a breakdown of current ratings and target prices for GoDaddy and VerifyMe, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoDaddy	0	3	6	1	2.80
VerifyMe	0	0	2	0	3.00

GoDaddy currently has a consensus target price of $93.10, indicating a potential upside of 29.96%. VerifyMe has a consensus target price of $4.50, indicating a potential upside of 226.09%. Given VerifyMe’s stronger consensus rating and higher probable upside, analysts clearly believe VerifyMe is more favorable than GoDaddy.

Summary

GoDaddy beats VerifyMe on 10 of the 15 factors compared between the two stocks.

About GoDaddy

(Get Rating)

GoDaddy, Inc. engages in the provision of domain name registration and web hosting services. It provides website building, hosting, and security tools. It operates through the Applications and Commerce (A and C) and Core Platform (Core) segments. The A and C segment consists of sales of products containing proprietary software, commerce products and third-party email and productivity solutions. The Core segment deals with the sales of domain registrations and renewals, aftermarket domain sales, website hosting products and website security product. The company was founded by Robert R. Parsons in January 1997 and is headquartered in Tempe, AZ.

About VerifyMe

(Get Rating)

VerifyMe, Inc. engages in the provision of software driven predictive analytics logistics. It operates under the PeriShip Global Solutions and VerifyMe Solutions segments. The PeriShip Global Solutions segment offers a value-added service provider for time and temperature sensitive parcel management. The VerifyMe Solutions segment specializes in solutions that connect brands with consumers through their products. The company was founded by Norman A. Gardner on November 10, 1999 and is headquartered in Lake Mary, FL.