Godaddy (GDDY) and Pareteum (TEUM) Critical Analysis

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

Risk and Volatility

Pareteum has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Godaddy has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Pareteum and Godaddy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pareteum	0	1	3	0	2.75
Godaddy	1	4	12	0	2.65

Pareteum currently has a consensus price target of $7.00, indicating a potential upside of 213.90%. Godaddy has a consensus price target of $77.00, indicating a potential upside of 22.11%. Given Pareteum’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pareteum is more favorable than Godaddy.

Profitability

This table compares Pareteum and Godaddy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pareteum	-67.83%	-60.67%	-43.28%
Godaddy	4.96%	8.01%	0.86%

Institutional & Insider Ownership

6.8% of Pareteum shares are held by institutional investors. Comparatively, 94.8% of Godaddy shares are held by institutional investors. 3.4% of Pareteum shares are held by company insiders. Comparatively, 7.6% of Godaddy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Pareteum and Godaddy’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pareteum	$13.55 million	16.10	-$12.46 million	($0.84)	-2.65
Godaddy	$2.23 billion	4.90	$136.40 million	$0.42	150.14

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 11 of the 14 factors compared between the two stocks.

About Pareteum

Pareteum Corporation operates a communications cloud services platform in Europe and internationally. Its platform provides mobility, messaging, and security services and applications, with a single-sign-on, application program interface (API), and software development suite. The company’s platform hosts integrated IT/back office and core network functionality for mobile network operators, as well as for enterprises to implement and leverage mobile communications solutions on a SaaS, PaaS, or IaaS basis. It also offers operational support system for channel partners with APIs for integration with third party systems, workflows for complex application orchestration, and customer support with branded portals and plug-ins for various other applications. Pareteum Corporation serves the markets of Internet of Things, mobile virtual network operators, smart cities, and application developers. The company was formerly known as Elephant Talk Communications Corp. and changed its name to Pareteum Corporation in November 2016. Pareteum Corporation is based in New York, New York.

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.

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