Godaddy (NYSE:GDDY) and Tufin Software Technologies (NYSE:TUFN) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
97.5% of Godaddy shares are held by institutional investors. 12.6% of Godaddy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Godaddy and Tufin Software Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Godaddy | 3.17% | 11.89% | 1.54% |
Tufin Software Technologies | N/A | N/A | N/A |
Earnings and Valuation
This table compares Godaddy and Tufin Software Technologies’ top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Godaddy | $2.66 billion | 4.75 | $77.10 million | $0.63 | 113.10 |
Tufin Software Technologies | $84.98 million | 8.20 | -$4.26 million | N/A | N/A |
Godaddy has higher revenue and earnings than Tufin Software Technologies.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Godaddy and Tufin Software Technologies, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Godaddy | 0 | 2 | 5 | 0 | 2.71 |
Tufin Software Technologies | 0 | 2 | 6 | 0 | 2.75 |
Godaddy currently has a consensus price target of $89.00, indicating a potential upside of 24.91%. Tufin Software Technologies has a consensus price target of $28.86, indicating a potential upside of 34.41%. Given Tufin Software Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Tufin Software Technologies is more favorable than Godaddy.
Summary
Godaddy beats Tufin Software Technologies on 7 of the 11 factors compared between the two stocks.
About Godaddy
GoDaddy Inc. designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; and hosting products, including shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security. It also offers presence products, such as GoCentral, an online tool that enables customers to build Websites and online stores; a range of marketing tools designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites; and social media management services. In addition, the company offers business application products, such as Microsoft Office 365, email accounts, email marketing, and telephony services. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.
About Tufin Software Technologies
Tufin Ltd. provides security policy management solutions. It offers Orchestration Suite, a solution for automatically designing, provisioning, analyzing, and auditing network security changes from the application layer down to the network layer; SecureTrack, a management platform for firewalls, routers, load-balancers, and additional network devices; SecureChange, a solution for automating firewall and router configuration changes across complex networks; SecureApp, a solution that enables organizations to manage network connectivity and security policies; and Tufin Iris, a cloud-native solution that enables cloud operations and IT security teams to gain visibility and control of security policies for cloud-based applications. The company provides solutions in the areas of change management, software-defined data center, firewall optimization, payment card industry data security standard compliance, network segmentation, continuous compliance, risk management, next generation firewall, and business continuity aspects for firewall/network administrators, chief security officers/chief information security officers, compliance officers, service providers, independent auditors, application owners, and chief information officers. It serves telecommunication, financial, energy and utility, retail, government, transportation, and pharmaceutical markets through a network of partners worldwide. The company was founded in 2004 and is headquartered in Ramat Gan, Israel with additional offices in North America, Europe, and the Asia Pacific.
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