GoDaddy vs Amazon.com Which Performs Better?

GoDaddy and Amazon are two giants in the tech industry, but their stocks appeal to different types of investors. GoDaddy is known for providing web hosting and domain registration services, catering to small businesses and individuals looking to establish an online presence. On the other hand, Amazon is an e-commerce behemoth that dominates the online retail market. While both companies have seen impressive growth in recent years, their stocks have different trajectories and appeal to investors with varying risk appetites.

GoDaddy or Amazon.com?

When comparing GoDaddy and Amazon.com, 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 GoDaddy and Amazon.com.

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. GoDaddy has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GoDaddy reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.50%. On the other hand, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 GoDaddy P/E ratio at 13.89 and Amazon.com's P/E ratio at 43.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GoDaddy P/B ratio is 72.14 while Amazon.com's P/B ratio is 8.38.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $178.76 for GoDaddy and $205.59 for Amazon.com. Over the past year, GoDaddy's prices ranged from $87.16 to $184.35, with a yearly change of 111.51%. Amazon.com's prices fluctuated between $139.52 and $212.25, with a yearly change of 52.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.