Deluxe vs GoDaddy Which Is a Smarter Choice?

Deluxe Corporation and GoDaddy Inc. are two well-known companies in the tech industry with distinct areas of focus. Deluxe specializes in providing services like checks, forms, and marketing solutions for small businesses, while GoDaddy is a domain registrar and web hosting company. Both companies have seen significant growth in recent years, but their stocks have performed differently. This comparison will explore the financial performance and potential investment opportunities of Deluxe versus GoDaddy stocks.

Deluxe or GoDaddy?

When comparing Deluxe 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 Deluxe 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. Deluxe has a dividend yield of 4.98%, while GoDaddy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Deluxe reports a 5-year dividend growth of 0.00% year and a payout ratio of 83.91%. 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 Deluxe P/E ratio at 16.80 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. Deluxe P/B ratio is 0.41 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, Deluxe has seen a 5-year revenue growth of 0.18%, while GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Deluxe's ROE at 5.78% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.81 for Deluxe and $184.86 for GoDaddy. Over the past year, Deluxe's prices ranged from $17.60 to $24.87, with a yearly change of 41.31%. 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.