Amazon.com vs GoDaddy Which Offers More Value?

Amazon.com and GoDaddy are two popular companies in the technology and e-commerce industries. While Amazon.com is known for its wide range of products and services, GoDaddy specializes in domain registration and web hosting. Both companies have seen significant growth in their stock prices over the years, with Amazon.com being a dominant player in the market and GoDaddy carving out its own niche. Investors looking to diversify their portfolios may consider both of these stocks for potential long-term growth.

Amazon.com or GoDaddy?

When comparing Amazon.com 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 Amazon.com 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. Amazon.com has a dividend yield of -%, while GoDaddy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Amazon.com P/E ratio at 47.81 and GoDaddy's P/E ratio at 15.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 9.20 while GoDaddy's P/B ratio is 81.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $220.60 for Amazon.com and $206.04 for GoDaddy. Over the past year, Amazon.com's prices ranged from $143.64 to $227.13, with a yearly change of 58.12%. GoDaddy's prices fluctuated between $99.90 and $210.30, with a yearly change of 110.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.