1&1 vs GoDaddy Which Is More Attractive?

1&1 and GoDaddy are two popular companies in the web hosting and domain registration industry. Both companies offer a wide range of services to individuals and businesses looking to establish an online presence. When comparing their stocks, it is important to consider factors such as market performance, revenue growth, customer base, and competitive advantages. By analyzing these key metrics, investors can make informed decisions about which company may offer the best investment opportunity in the long run.

1&1 or GoDaddy?

When comparing 1&1 and GoDaddy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between 1&1 and GoDaddy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. 1&1 has a dividend yield of 0.42%, while GoDaddy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. 1&1 reports a 5-year dividend growth of -50.00% year and a payout ratio of 3.25%. On the other hand, GoDaddy reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.50%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with 1&1 P/E ratio at 7.80 and GoDaddy's P/E ratio at 14.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. 1&1 P/B ratio is 0.35 while GoDaddy's P/B ratio is 73.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, 1&1 has seen a 5-year revenue growth of 0.12%, while GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with 1&1's ROE at 4.58% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €11.62 for 1&1 and $183.16 for GoDaddy. Over the past year, 1&1's prices ranged from €11.62 to €19.78, with a yearly change of 70.22%. GoDaddy's prices fluctuated between $88.92 and $187.54, with a yearly change of 110.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.