Godaddy (NYSE:GDDY) and Verint Systems (NASDAQ:VRNT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Institutional & Insider Ownership
94.8% of Godaddy shares are owned by institutional investors. Comparatively, 94.6% 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets 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 currently has a consensus price target of $77.00, indicating a potential upside of 10.79%. Verint Systems has a consensus price target of $56.67, indicating a potential upside of 11.05%. Given Verint Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Verint Systems is more favorable than Godaddy.
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%
Risk & Volatility
Godaddy has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Earnings & Valuation
This table compares Godaddy and Verint Systems’ top-line revenue, earnings per share and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
Godaddy
$2.23 billion
5.40
$136.40 million
$0.42
165.48
Verint Systems
$1.14 billion
2.93
-$6.62 million
$1.77
28.83
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.
Summary
Godaddy beats Verint Systems on 8 of the 14 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 Verint Systems
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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