Godaddy (NYSE:GDDY) and Verint Systems (NASDAQ:VRNT) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Godaddy and Verint Systems’ net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
Godaddy
4.96%
8.01%
0.86%
Verint Systems
4.58%
12.47%
5.48%
Valuation & Earnings
This table compares Godaddy and Verint Systems’ gross revenue, earnings per share (EPS) and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
Godaddy
$2.23 billion
5.31
$136.40 million
$0.42
162.62
Verint Systems
$1.14 billion
2.80
-$6.62 million
$1.77
27.55
Godaddy has higher revenue and earnings than Verint Systems. Verint Systems is trading at a lower price-to-earnings ratio than Godaddy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.8% of Godaddy shares are owned by institutional investors. Comparatively, 94.7% of Verint Systems shares are owned by institutional investors. 7.6% of Godaddy shares are owned by insiders. Comparatively, 1.4% of Verint Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Godaddy and Verint Systems, as reported by MarketBeat.
Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
Godaddy
1
4
12
0
2.65
Verint Systems
0
0
6
0
3.00
Godaddy presently has a consensus price target of $77.00, indicating a potential upside of 12.74%. Verint Systems has a consensus price target of $56.67, indicating a potential upside of 16.19%. Given Verint Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Verint Systems is more favorable than Godaddy.
Risk & Volatility
Godaddy has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Summary
Godaddy beats Verint Systems on 8 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.
Verint Systems Company Profile
Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide. Its Customer Engagement Solutions segment provides automated quality management, automated verification, branch surveillance and investigation, case management, chat engagement, coaching/learning, compliance recording, customer communities, desktop and process analytics, digital feedback, email engagement, employee desktop, enterprise feedback, financial compliance, full-time recording, gamification, identity analytics, internal communities, knowledge management, mobile workforce, performance management, robotic process automation, social analytics, speech and text analytics, virtual assistant, voice self-service, voice self-service fraud detection, Web/mobile self-service, work manager, and workforce management solutions. The company’s Cyber Intelligence Solutions segment offers cyber security solutions; intelligence fusion center and Web and social intelligence software that enables collection, fusion, and analysis of data from the Web; network intelligence suite, which generates critical intelligence of data captured from various network and open sources; and situational intelligence software enables security organizations to fuse, analyze, and report information, as well as take action on risks, alarms, and incidents. The company also offers a range of customer services, including implementation and training, consulting and managed, and maintenance support services. It sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. The company was founded in 1994 and is headquartered in Melville, New York.
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