Godaddy (NYSE:GDDY) and Unisys (NYSE:UIS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Insider and Institutional Ownership
96.6% of Godaddy shares are held by institutional investors. 7.6% of Godaddy shares are held by company insiders. Comparatively, 2.2% of Unisys shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Godaddy and Unisys’ revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Godaddy | $2.66 billion | 4.90 | $136.40 million | $0.63 | 119.21 |
Unisys | $2.83 billion | 0.25 | $75.50 million | $1.95 | 6.99 |
Godaddy has higher earnings, but lower revenue than Unisys. Unisys is trading at a lower price-to-earnings ratio than Godaddy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Godaddy has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Unisys has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.
Profitability
This table compares Godaddy and Unisys’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Godaddy | 2.90% | 12.61% | 1.41% |
Unisys | 2.67% | -10.65% | 5.53% |
Analyst Ratings
This is a summary of current recommendations and price targets for Godaddy and Unisys, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Godaddy | 1 | 3 | 10 | 0 | 2.64 |
Unisys | 0 | 1 | 2 | 0 | 2.67 |
Godaddy currently has a consensus target price of $84.45, suggesting a potential upside of 12.46%. Unisys has a consensus target price of $14.50, suggesting a potential upside of 6.30%. Given Godaddy’s higher possible upside, research analysts plainly believe Godaddy is more favorable than Unisys.
Summary
Godaddy beats Unisys on 9 of the 14 factors compared between the two stocks.
Godaddy Company Profile
GoDaddy Inc. designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally. It provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; hosting products, such as shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security. The company also offers presence products, including GoCentral, an online tool that enables customers to build Websites and online stores; and 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. In addition, the company offers business application products, including Microsoft Office 365, email accounts, email marketing, and telephony services. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.
Unisys Company Profile
Unisys Corporation provides information technology services worldwide. It operates in two segments, Services and Technology. The Services segment provides cloud and infrastructure services, application services, and business process outsourcing services. The Technology segment designs and develops software, hardware, and other related products. It offers a range of data-center, infrastructure management, and cloud computing services for clients to virtualize and automate data-center environments. This segment also provides industry application products, which allow law enforcement agencies to share critical investigative intelligence and integrated child support case management tools; travel and transportation companies to manage freight and distribution and leverage predictive analytics; and life sciences and healthcare companies to manage medical devices and visibility over the pharmaceutical supply chain, as well as offers financial solutions to deliver banking. In addition, its products include Unisys ClearPath Forward hardware-independent software for high-volume enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels. The company serves customers in the government, commercial, and financial services markets through direct sales force, distributors, resellers, and alliance partners. Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania.
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