Critical Analysis: Streamline Health Solutions (STRM) versus Godaddy (GDDY)

Godaddy (NYSE:GDDY) and Streamline Health Solutions (NASDAQ:STRM) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Risk and Volatility

Godaddy has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares Godaddy and Streamline Health Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Godaddy	2.90%	11.91%	1.40%
Streamline Health Solutions	-11.88%	-27.49%	-7.61%

Institutional and Insider Ownership

97.6% of Godaddy shares are held by institutional investors. Comparatively, 44.6% of Streamline Health Solutions shares are held by institutional investors. 7.6% of Godaddy shares are held by company insiders. Comparatively, 32.0% of Streamline Health Solutions shares are held by company 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.

Earnings & Valuation

This table compares Godaddy and Streamline Health Solutions’ 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	4.94	$77.10 million	$0.63	119.03
Streamline Health Solutions	$24.34 million	0.95	-$3.09 million	N/A	N/A

Godaddy has higher revenue and earnings than Streamline Health Solutions.

Analyst Ratings

This is a summary of recent ratings and target prices for Godaddy and Streamline Health Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Godaddy	1	3	10	0	2.64
Streamline Health Solutions	0	0	0	0	N/A

Godaddy currently has a consensus price target of $84.45, suggesting a potential upside of 12.62%. Given Godaddy’s higher possible upside, equities research analysts clearly believe Godaddy is more favorable than Streamline Health Solutions.

Summary

Godaddy beats Streamline Health Solutions on 10 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. 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.

About Streamline Health Solutions

Streamline Health Solutions, Inc. provides health information technology solutions and services for hospitals and health systems in the United States and Canada. It provides software-based solutions and auditing services, which captures, aggregates, and translates structured and unstructured data to deliver predictive insights to its clients. The company offers health information management, coding, and clinical documentation improvement (CDI) solutions, which include cloud-based software solutions, such as content management, release of information, computer-assisted coding, CDI, abstracting, and physician query; and eValuator, a cloud-based software as a service coding analysis platform. It also provides financial management solutions, including accounts receivable management, denials management, claims processing, spend management, and audit management; patient care solutions that enable healthcare providers to enhance their patient care; and custom integration, training, electronic image conversion, audit, and database monitoring services. The company sells its solutions and services through direct sales force and reseller partnerships. Streamline Health Solutions, Inc. was founded in 1989 and is based in Atlanta, Georgia.

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