BigCommerce vs GoDaddy Which Performs Better?

BigCommerce and GoDaddy are two prominent players in the e-commerce and website hosting industries, respectively. BigCommerce, a SaaS platform, provides businesses with tools to create and manage their online stores, while GoDaddy offers domain registration and website hosting services. Both companies have seen significant growth in recent years, but their stocks have performed differently in the market. Investors may want to consider factors such as revenue growth, market share, and future prospects when evaluating which stock to invest in.

BigCommerce or GoDaddy?

When comparing BigCommerce 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 BigCommerce 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. BigCommerce 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. BigCommerce reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.75%. 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 BigCommerce P/E ratio at -19.71 and GoDaddy's P/E ratio at 15.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BigCommerce P/B ratio is 18.91 while GoDaddy's P/B ratio is 81.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BigCommerce has seen a 5-year revenue growth of 1.55%, while GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BigCommerce's ROE at -103.45% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.94 for BigCommerce and $206.19 for GoDaddy. Over the past year, BigCommerce's prices ranged from $5.12 to $10.19, with a yearly change of 98.83%. 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.