GoDaddy (NYSE:GDDY) vs. Kyndryl (NYSE:KD) Financial Contrast

Kyndryl (NYSE:KD) and GoDaddy (NYSE:GDDY) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Earnings & Valuation

This table compares Kyndryl and GoDaddy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$15.09 billion	0.19	$199.00 million	$0.37	35.04
GoDaddy	$4.95 billion	2.91	$875.00 million	$7.31	15.55

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

Analyst Recommendations

This is a summary of current recommendations for Kyndryl and GoDaddy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
GoDaddy	1	8	9	0	2.44

Kyndryl presently has a consensus price target of $16.50, indicating a potential upside of 27.28%. GoDaddy has a consensus price target of $113.62, indicating a potential downside of 0.06%. Given Kyndryl’s higher possible upside, analysts clearly believe Kyndryl is more favorable than GoDaddy.

Profitability

This table compares Kyndryl and GoDaddy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.58%	12.24%	1.33%
GoDaddy	18.56%	1,200.87%	11.98%

Volatility and Risk

Kyndryl has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, GoDaddy has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

71.5% of Kyndryl shares are owned by institutional investors. Comparatively, 90.3% of GoDaddy shares are owned by institutional investors. 2.0% of Kyndryl shares are owned by company insiders. Comparatively, 0.9% of GoDaddy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

GoDaddy beats Kyndryl on 9 of the 14 factors compared between the two stocks.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

About GoDaddy

GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates through two segments: Applications and Commerce, and Core Platform. The Applications and Commerce segment provides applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to easily build and manage a faster WordPress site; Managed WooCommerce Stores to sell anything and anywhere online; and marketing tools and services, such as GoDaddy Studio mobile application, search engine optimization, Meta and Google My Business, and email and social media marketing designed to help businesses acquire and engage customers and create content. The segment also offers connected commerce comprising Smart Terminal, a dual screen all-in-one Point-of-Sale system that allows customers to manage in-store inventory and product catalogs and take payments; GoDaddy Payments, a payment facilitator that enables customers to accept all major forms of payments; and email service plans with a multi-feature web interface, and Microsoft Office 365 accounts that connects to customers’ domains. The Core Platform segment offers domain products, including primary registrations, domain aftermarket platform, and domain name add-ons, as well as GoDaddy Registry, a provider of domain name registry services; and hosting and security services comprising shared website hosting, virtual private servers, and managed wordpress hosting services, as well as security products with a comprehensive suite of tools designed to help secure customers’ online presence. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was founded in 1997 and is headquartered in Tempe, Arizona.