Godaddy (NYSE:GDDY) and Pareteum (NASDAQ:TEUM) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Risk & Volatility
Godaddy has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Pareteum has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.
Insider and Institutional Ownership
94.8% of Godaddy shares are held by institutional investors. Comparatively, 6.8% of Pareteum shares are held by institutional investors. 7.6% of Godaddy shares are held by company insiders. Comparatively, 3.4% of Pareteum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Godaddy and Pareteum’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Godaddy | 4.96% | 8.01% | 0.86% |
Pareteum | -67.83% | -60.67% | -43.28% |
Analyst Recommendations
This is a breakdown of recent recommendations for Godaddy and Pareteum, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Godaddy | 1 | 4 | 12 | 0 | 2.65 |
Pareteum | 0 | 1 | 2 | 0 | 2.67 |
Godaddy currently has a consensus price target of $77.00, suggesting a potential upside of 23.00%. Given Godaddy’s higher possible upside, equities analysts plainly believe Godaddy is more favorable than Pareteum.
Valuation and Earnings
This table compares Godaddy and Pareteum’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Godaddy | $2.23 billion | 4.87 | $136.40 million | $0.42 | 149.05 |
Pareteum | $13.55 million | 14.20 | -$12.46 million | ($0.84) | -2.35 |
Godaddy has higher revenue and earnings than Pareteum. Pareteum is trading at a lower price-to-earnings ratio than Godaddy, indicating that it is currently the more affordable of the two stocks.
Summary
Godaddy beats Pareteum on 12 of the 14 factors compared between the two stocks.
Godaddy Company Profile
Pareteum Company Profile
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