AMP vs GoDaddy Which Is More Favorable?

AMP Limited and GoDaddy Inc. are two companies that operate in the financial and technology sectors, respectively. AMP is a leading wealth management company in Australia, while GoDaddy is a popular web hosting and domain registration provider. Both companies have captured investors' interest due to their strong market presence and growth potential. In this analysis, we will compare the stock performance of AMP and GoDaddy, examining key financial metrics and market trends to determine which company may offer better investment opportunities.

AMP or GoDaddy?

When comparing AMP 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 AMP 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. AMP has a dividend yield of 2.98%, while GoDaddy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%. 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 AMP P/E ratio at 32.46 and GoDaddy's P/E ratio at 14.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AMP P/B ratio is 1.06 while GoDaddy's P/B ratio is 74.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AMP has seen a 5-year revenue growth of -0.67%, while GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $184.86 for GoDaddy. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. GoDaddy's prices fluctuated between $90.42 and $190.14, with a yearly change of 110.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.