ADSK vs. GDDY: A Head-to-Head Stock Comparison

Company Overview

ADSK’s market capitalization of 63.49 billion USD is substantially larger than GDDY’s 25.25 billion USD, indicating a significant difference in their market valuations.

With betas of 1.45 for ADSK and 1.07 for GDDY, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of ADSK and GDDY over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ADSK and GDDY. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• ADSK’s Price-to-Earnings (P/E) ratio of 54.00 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
• ADSK’s Forward PEG ratio of 4.04 is very high. This suggests that investors have priced in a substantial amount of future earnings growth, potentially making the stock vulnerable if these high expectations are not met or if growth slows.

Dividend Comparison

Neither ADSK nor GDDY currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section evaluates the financial strength of ADSK and GDDY. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• ADSK’s current ratio of 0.65 and GDDY’s current ratio of 0.56 are both considered low. For ADSK, this level suggests it might encounter challenges in using its current assets to satisfy its immediate financial obligations. GDDY’s low current ratio also points to potential constraints on its liquidity, meaning it could find it difficult to cover short-term liabilities with its available assets.
• ADSK’s quick ratio of 0.65 and GDDY’s quick ratio of 0.56 are both considered low. For ADSK, this low ratio indicates that its most liquid assets (excluding inventory) may not be sufficient to cover its immediate liabilities, suggesting potential pressure on its short-term solvency. GDDY’s low quick ratio also points to constrained immediate liquidity, potentially highlighting a heavy reliance on converting inventory to meet its short-term financial obligations.