GoDaddy (NYSE: GDDY) and Fortinet (NASDAQ:FTNT) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
This table compares GoDaddy and Fortinet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
77.9% of GoDaddy shares are held by institutional investors. Comparatively, 69.0% of Fortinet shares are held by institutional investors. 25.7% of GoDaddy shares are held by insiders. Comparatively, 17.0% of Fortinet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
GoDaddy has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Fortinet has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for GoDaddy and Fortinet, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GoDaddy currently has a consensus target price of $47.92, indicating a potential upside of 7.12%. Fortinet has a consensus target price of $40.79, indicating a potential upside of 6.67%. Given GoDaddy’s stronger consensus rating and higher possible upside, research analysts clearly believe GoDaddy is more favorable than Fortinet.
Earnings & Valuation
This table compares GoDaddy and Fortinet’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|GoDaddy||$2.01 billion||2.48||$238.50 million||$0.14||319.50|
|Fortinet||$1.38 billion||4.87||$142.32 million||$0.37||103.35|
GoDaddy has higher revenue and earnings than Fortinet. Fortinet is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.
GoDaddy Inc. is a technology provider to small businesses, Web design professionals and individuals. The Company delivers cloud-based products and personalized customer care. It operates a domain marketplace, where its customers can find the digital real estate that matches their idea. It provides Website building, hosting and security tools to help customers construct and protect online presence. It provides applications that enable connecting to customers and managing businesses. The Company provides search, discovery and recommendation tools, as well as a selection of domain name for ventures. It provides productivity tools, such as domain-specific e-mail, online storage, invoicing, bookkeeping and payment solutions to run ventures, as well as marketing products. The Company’s products, including GoCentral enable to build a Website or online store for both desktop and mobile. Its products are powered by a cloud platform and enable its customers to get found online.
Fortinet, Inc. is a network security company. The Company provides cyber security solutions to a range of enterprises, service providers and government organizations across the world. Its network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats. The Company’s product offerings consist of its FortiGate product family, along with its FortiManager central management and FortiAnalyzer central logging and reporting product families. Its cybersecurity platform includes a range of products, which include its FortiMail e-mail security, FortiSandbox advanced threat protection (ATP), FortiWeb Web application firewall, FortiDDos and FortiDB database security appliances, as well as its FortiClient endpoint security software, FortiAP secure wireless access points and FortiSwitch secure switch connectivity products.
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