GoDaddy vs PayPal Which Is More Lucrative?

GoDaddy and PayPal are two well-known companies in the financial sector, but they operate in different industries. GoDaddy is a domain registration and web hosting company, while PayPal is a digital payments platform. Both companies have experienced significant growth in recent years, with GoDaddy expanding its services and PayPal continuing to dominate the online payment market. Investors considering these stocks must weigh the potential for future growth and market competition to make informed decisions about their portfolios.

GoDaddy or PayPal?

When comparing GoDaddy and PayPal, 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 PayPal.

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 PayPal 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, PayPal 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 PayPal's P/E ratio at 19.93. 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 PayPal's P/B ratio is 4.37.

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 PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GoDaddy's ROE at 747.83% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $178.76 for GoDaddy and $83.38 for PayPal. Over the past year, GoDaddy's prices ranged from $87.16 to $184.35, with a yearly change of 111.51%. PayPal's prices fluctuated between $53.98 and $87.47, with a yearly change of 62.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.