Parsons (NYSE:PSN) and Godaddy (NYSE:GDDY) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Valuation and Earnings
This table compares Parsons and Godaddy’s revenue, earnings per share (EPS) and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
Parsons
$3.56 billion
1.04
$222.34 million
N/A
N/A
Godaddy
$2.66 billion
4.69
$77.10 million
$0.63
111.78
Parsons has higher revenue and earnings than Godaddy.
Profitability
This table compares Parsons and Godaddy’s net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
Parsons
N/A
N/A
N/A
Godaddy
3.17%
11.89%
1.54%
Institutional and Insider Ownership
0.0% of Parsons shares are held by institutional investors. Comparatively, 97.5% of Godaddy shares are held by institutional investors. 12.6% of Godaddy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Parsons and Godaddy, as provided by MarketBeat.com.
Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
Parsons
0
3
4
0
2.57
Godaddy
0
2
6
0
2.75
Parsons currently has a consensus price target of $37.33, indicating a potential upside of 0.39%. Godaddy has a consensus price target of $88.63, indicating a potential upside of 25.85%. Given Godaddy’s stronger consensus rating and higher probable upside, analysts clearly believe Godaddy is more favorable than Parsons.
Summary
Godaddy beats Parsons on 9 of the 11 factors compared between the two stocks.
Parsons Company Profile
Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates in two segments, Federal Solutions and Critical Infrastructure. The company offers cybersecurity software and engineering services, hardware prototyping, and other technical services to the U.S. Army and the United States intelligence community; ThunderRidge, a tool that assists cyber operational users to develop action plans, assess cyber threats, and disseminate situational awareness in real-time; and geospatial intelligence, big data analytics, and threat mitigation technology services to the defense, intelligence, space and command, control, communications, computer, cyber, intelligence, surveillance, and reconnaissance. It also provides mission planning for space situational awareness, small satellite systems integration, electronic warfare, directed energy modeling and simulation, and command and control systems and support to the Missile Defense Agency, the U.S. Air Force, and the U.S. Army; converged cyber-physical solutions for critical infrastructure, and global military mission readiness and training services to the Federal Aviation Administration and the U.S. Army; and technology services for advanced energy production systems, healthcare systems, environmental systems, and related infrastructure. In addition, the company offers intelligent transportation system management, train controls integration, smart cities software, and critical infrastructure cyber protection to the transportation authorities, rail, and transit entities; engineering services for complex infrastructure, including bridges and tunnels, roads and highways, airports, and rail and transit; and engineering, program management, and environmental solutions to private-sector industrial clients and public utilities. Parsons Corporation was founded in 1944 and is headquartered in Centreville, Virginia.
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. 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.
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