Check Point Software Technologies Ltd. (CHKP) vs GoDaddy Inc. (GDDY)

Check Point Software Technologies Ltd. and GoDaddy Inc. are both Software Infrastructure companies. Check Point Software Technologies Ltd. and GoDaddy Inc. are of similar size ($15.1B and $14.6B). GoDaddy Inc. trades at the lower P/E: 16.4× against 17.7×. GoDaddy Inc. grew revenue faster over the last twelve months: 6.38% against 2.70%. Check Point Software Technologies Ltd. has the higher net margin (31.7% vs 18.6%) and the lower return on invested capital (19.8% vs 33.1%). Across the 21 metrics below, GoDaddy Inc. leads on 11 and Check Point Software Technologies Ltd. on 10.

Valuation

Metric CHKP GDDY Software Infrastructure median
P/E 17.66 16.41 24.43
P/S 5.45 2.92 2.81
P/B 5.69 n/m 2.88
Price to free cash flow 13.33 8.66 17.94
EV/EBITDA 17.48 12.60 14.51
EV/Sales 5.38 3.43 2.91
Earnings yield 5.66% 6.09% 0.00%
Free cash flow yield 7.50% 11.54% 0.49%

Profitability

Metric CHKP GDDY Software Infrastructure median
Gross margin 87.19% 63.75% 57.45%
Operating margin 28.31% 25.72% 0.00%
Net margin 31.74% 18.56% 0.00%
Free cash flow margin 40.86% 33.66% 0.00%
Return on equity 30.61% (4,091.97%) 0.00%
Return on assets 13.32% 12.10% 0.00%
Return on invested capital 19.82% 33.14% 0.00%

Growth

Metric CHKP GDDY Software Infrastructure median
Revenue growth (TTM) 2.70% 6.38% 14.28%
EPS growth (last fiscal year) 28.95% (3.57%) 18.26%
Revenue growth, 5-year CAGR 5.71% 8.34% 16.15%
Net income growth, 5-year CAGR 4.54% 0.00% 0.00%

Health

Metric CHKP GDDY Software Infrastructure median
Debt to equity 0.75 (27.17) 0.02
Current ratio 1.60 0.61 1.53
Net debt to EBITDA (1.14) 2.17 0.05

Dividend

Metric CHKP GDDY Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric CHKP GDDY Software Infrastructure median
Market cap 15.13b 14.57b 661.51m

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