Reviewing Godaddy (GDDY) & Wipro (WIT)

Godaddy (NYSE: GDDY) and Wipro (NYSE:WIT) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Godaddy and Wipro, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Godaddy 0 5 12 0 2.71
Wipro 4 1 0 0 1.20

Godaddy presently has a consensus target price of $51.80, indicating a potential downside of 7.12%. Wipro has a consensus target price of $277.00, indicating a potential upside of 4,890.99%. Given Wipro’s higher probable upside, analysts clearly believe Wipro is more favorable than Godaddy.

Institutional and Insider Ownership

84.7% of Godaddy shares are owned by institutional investors. Comparatively, 2.6% of Wipro shares are owned by institutional investors. 22.7% of Godaddy shares are owned by insiders. Comparatively, 1.0% of Wipro shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Godaddy and Wipro’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Godaddy $1.85 billion 5.02 -$16.50 million $0.26 214.51
Wipro $8.49 billion 2.94 $1.31 billion $0.27 20.56

Wipro has higher revenue and earnings than Godaddy. Wipro is trading at a lower price-to-earnings ratio than Godaddy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Godaddy and Wipro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Godaddy 2.34% 7.89% 0.97%
Wipro 15.46% 16.09% 10.54%

Dividends

Wipro pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Godaddy does not pay a dividend. Wipro pays out 11.1% of its earnings in the form of a dividend.

Risk & Volatility

Godaddy has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Wipro has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

About Godaddy

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.

About Wipro

Wipro Limited (Wipro) is a global information technology (IT) services provider. It operates through two segments: IT Services and IT Products. The Company’s IT Services business provides a range of IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. Its products include computing, Platforms and Storage, Networking Solutions, Enterprise Information Security, and software products, including databases and operating systems. The Company is a reseller of third-party enterprise products through its direct sales force.

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