Analyzing GoDaddy (NYSE:GDDY) and Kyndryl (NYSE:KD)

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

Risk and Volatility

GoDaddy has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Kyndryl has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Profitability

This table compares GoDaddy and Kyndryl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoDaddy	18.56%	1,200.87%	11.98%
Kyndryl	0.58%	12.24%	1.33%

Analyst Ratings

This is a summary of current ratings and recommmendations for GoDaddy and Kyndryl, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoDaddy	1	8	9	0	2.44
Kyndryl	2	7	0	0	1.78

GoDaddy presently has a consensus price target of $113.62, suggesting a potential downside of 0.06%. Kyndryl has a consensus price target of $16.50, suggesting a potential upside of 27.28%. Given Kyndryl’s higher possible upside, analysts plainly believe Kyndryl is more favorable than GoDaddy.

Insider and Institutional Ownership

90.3% of GoDaddy shares are held by institutional investors. Comparatively, 71.5% of Kyndryl shares are held by institutional investors. 0.9% of GoDaddy shares are held by insiders. Comparatively, 2.0% of Kyndryl shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares GoDaddy and Kyndryl”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoDaddy	$4.95 billion	2.91	$875.00 million	$7.31	15.55
Kyndryl	$15.09 billion	0.19	$199.00 million	$0.37	35.04

GoDaddy has higher earnings, but lower revenue than Kyndryl. GoDaddy is trading at a lower price-to-earnings ratio than Kyndryl, indicating that it is currently the more affordable of the two stocks.

Summary

GoDaddy beats Kyndryl on 9 of the 14 factors compared between the two stocks.

About GoDaddy

GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates through two segments: Applications and Commerce, and Core Platform. The Applications and Commerce segment provides applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to easily build and manage a faster WordPress site; Managed WooCommerce Stores to sell anything and anywhere online; and marketing tools and services, such as GoDaddy Studio mobile application, search engine optimization, Meta and Google My Business, and email and social media marketing designed to help businesses acquire and engage customers and create content. The segment also offers connected commerce comprising Smart Terminal, a dual screen all-in-one Point-of-Sale system that allows customers to manage in-store inventory and product catalogs and take payments; GoDaddy Payments, a payment facilitator that enables customers to accept all major forms of payments; and email service plans with a multi-feature web interface, and Microsoft Office 365 accounts that connects to customers’ domains. The Core Platform segment offers domain products, including primary registrations, domain aftermarket platform, and domain name add-ons, as well as GoDaddy Registry, a provider of domain name registry services; and hosting and security services comprising shared website hosting, virtual private servers, and managed wordpress hosting services, as well as security products with a comprehensive suite of tools designed to help secure customers’ online presence. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was founded in 1997 and is headquartered in Tempe, Arizona.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.