Godaddy (NYSE: GDDY) is one of 183 public companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Godaddy to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, risk, valuation and earnings.

Profitability

This table compares Godaddy and its peers’ 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 -16.75% -272.90% -4.17%

Institutional & Insider Ownership

84.3% of Godaddy shares are owned by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 22.7% of Godaddy shares are owned by insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Godaddy and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Godaddy $1.85 billion -$16.50 million 188.01
Godaddy Competitors $2.79 billion $289.83 million 338.51

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

Volatility & Risk

Godaddy has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Godaddy’s peers have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Godaddy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Godaddy 0 4 11 0 2.73
Godaddy Competitors 732 4647 7420 166 2.54

Godaddy presently has a consensus target price of $50.15, suggesting a potential upside of 2.61%. As a group, “IT Services & Consulting” companies have a potential upside of 2.84%. Given Godaddy’s peers higher probable upside, analysts clearly believe Godaddy has less favorable growth aspects than its peers.

Summary

Godaddy beats its peers on 7 of the 13 factors compared.

About Godaddy

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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