Godaddy (NYSE:GDDY) and SofTech (OTCMKTS:SOFT) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Risk & Volatility
Godaddy has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, SofTech has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500.
Profitability
This table compares Godaddy and SofTech’s net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
Godaddy
2.90%
12.61%
1.41%
SofTech
N/A
N/A
N/A
Analyst Recommendations
This is a summary of current recommendations for Godaddy and SofTech, as reported by MarketBeat.
Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
Godaddy
1
3
10
0
2.64
SofTech
0
0
0
0
N/A
Godaddy presently has a consensus price target of $84.45, indicating a potential upside of 12.68%. Given Godaddy’s higher possible upside, research analysts clearly believe Godaddy is more favorable than SofTech.
Insider and Institutional Ownership
96.6% of Godaddy shares are held by institutional investors. 7.6% of Godaddy shares are held by insiders. Comparatively, 28.6% of SofTech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Godaddy and SofTech’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
Godaddy
$2.66 billion
4.89
$136.40 million
$0.63
118.97
SofTech
$4.17 million
0.05
-$670,000.00
N/A
N/A
Godaddy has higher revenue and earnings than SofTech.
Summary
Godaddy beats SofTech on 9 of the 11 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.
SofTech Company Profile
SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.
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