GoDaddy Inc. (GDDY) vs Gen Digital Inc. (GEN)

GoDaddy Inc. and Gen Digital Inc. are both Software Infrastructure companies. GoDaddy Inc. and Gen Digital Inc. are of similar size ($14.9B and $14.5B). Gen Digital Inc. trades at the lower P/E: 14.3× against 16.5×. Gen Digital Inc. grew revenue faster over the last twelve months: 20.2% against 7.41%. Gen Digital Inc. has the higher net margin (20.7% vs 17.8%) and the lower return on invested capital (12.9% vs 30.2%). Across the 22 metrics below, Gen Digital Inc. leads on 12 and GoDaddy Inc. on 10.

Valuation

Metric GDDY GEN Software Infrastructure median
P/E 16.50 14.28 25.33
P/S 2.88 2.93 3.11
P/B 2,190.36 5.60 2.91
Price to free cash flow 8.62 9.54 18.80
EV/EBITDA 12.72 8.61 14.46
EV/Sales 3.39 4.42 3.01
Earnings yield 6.06% 7.00% 0.00%
Free cash flow yield 11.60% 10.48% 0.27%

Profitability

Metric GDDY GEN Software Infrastructure median
Gross margin 63.80% 78.01% 59.21%
Operating margin 24.82% 41.68% 0.00%
Net margin 17.83% 20.73% 0.00%
Free cash flow margin 33.36% 30.71% 0.00%
Return on equity 442.86% 41.94% 0.00%
Return on assets 11.19% 6.58% 0.00%
Return on invested capital 30.15% 12.91% 0.00%

Growth

Metric GDDY GEN Software Infrastructure median
Revenue growth (TTM) 7.41% 20.16% 12.44%
EPS growth (last fiscal year) (3.57%) 52.43% 20.22%
Revenue growth, 5-year CAGR 8.34% 14.41% 15.74%
Net income growth, 5-year CAGR 0.00% 11.92% 0.00%

Health

Metric GDDY GEN Software Infrastructure median
Debt to equity 563.34 3.07 0.04
Current ratio 0.63 0.47 1.53
Net debt to EBITDA 2.17 2.98 0.06

Dividend

Metric GDDY GEN Software Infrastructure median
Dividend yield — 2.01% 1.06%
Payout ratio — 0.29 0.29

Size

Metric GDDY GEN Software Infrastructure median
Market cap 14.53b 14.90b 644.05m

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