Godaddy (NYSE: GDDY) is one of 181 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Godaddy to similar businesses based on the strength of its valuation, dividends, risk, earnings, analyst recommendations, institutional ownership and profitability.

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 -20.09% -255.45% -3.89%

Risk and Volatility

Godaddy has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Godaddy’s peers have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Godaddy and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Godaddy 0 3 11 0 2.79
Godaddy Competitors 724 4578 7298 170 2.54

Godaddy presently has a consensus target price of $50.00, indicating a potential upside of 8.48%. As a group, “IT Services & Consulting” companies have a potential upside of 6.80%. Given Godaddy’s stronger consensus rating and higher possible upside, research analysts clearly believe Godaddy is more favorable than its peers.

Institutional & Insider Ownership

84.3% of Godaddy shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 22.7% of Godaddy shares are held by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Godaddy $1.85 billion -$16.50 million 177.28
Godaddy Competitors $2.79 billion $289.83 million 301.92

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.

Summary

Godaddy beats its peers 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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