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

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Here’s a clear look at ALAB and GDDY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

GDDY’s market capitalization of 25.27 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.

With betas of 1.40 for ALAB and 1.07 for GDDY, both stocks show similar sensitivity to overall market movements.

SymbolALABGDDY
Company NameAstera Labs, Inc. Common StockGoDaddy Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Infrastructure
CEOJitendra MohanAmanpal Singh Bhutani
Price90.8 USD177.32 USD
Market Cap14.97 billion USD25.27 billion USD
Beta1.401.07
ExchangeNASDAQNYSE
IPO DateMarch 20, 2024March 31, 2015
ADRNoNo

Historical Performance

This chart compares the performance of ALAB and GDDY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ALAB vs. GDDY: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ALAB

4.43%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

GDDY

214.84%

Software - Infrastructure Industry

Max
80.61%
Q3
29.97%
Median
2.84%
Q1
-8.35%
Min
-56.26%

GDDY’s Return on Equity of 214.84% is exceptionally high, placing it well beyond the typical range for the Software - Infrastructure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ALAB vs. GDDY: A comparison of their ROE against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Return on Invested Capital

ALAB

-4.25%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

GDDY

17.22%

Software - Infrastructure Industry

Max
39.31%
Q3
11.97%
Median
1.67%
Q1
-7.10%
Min
-34.29%

In the upper quartile for the Software - Infrastructure industry, GDDY’s Return on Invested Capital of 17.22% signifies a highly effective use of its capital to generate profits when compared to its peers.

ALAB vs. GDDY: A comparison of their ROIC against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Net Profit Margin

ALAB

8.44%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

GDDY

16.21%

Software - Infrastructure Industry

Max
46.46%
Q3
14.65%
Median
2.66%
Q1
-7.70%
Min
-35.45%

A Net Profit Margin of 16.21% places GDDY in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.

ALAB vs. GDDY: A comparison of their Net Profit Margin against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Operating Profit Margin

ALAB

-4.45%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

GDDY

20.85%

Software - Infrastructure Industry

Max
48.51%
Q3
16.56%
Median
4.48%
Q1
-6.43%
Min
-40.18%

An Operating Profit Margin of 20.85% places GDDY in the upper quartile for the Software - Infrastructure industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ALAB vs. GDDY: A comparison of their Operating Margin against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Profitability at a Glance

SymbolALABGDDY
Return on Equity (TTM)4.43%214.84%
Return on Assets (TTM)3.69%9.63%
Return on Invested Capital (TTM)-4.25%17.22%
Net Profit Margin (TTM)8.44%16.21%
Operating Profit Margin (TTM)-4.45%20.85%
Gross Profit Margin (TTM)75.76%62.55%

Financial Strength

Current Ratio

ALAB

13.92

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

GDDY

0.56

Software - Infrastructure Industry

Max
3.80
Q3
2.25
Median
1.51
Q1
1.10
Min
0.23

GDDY’s Current Ratio of 0.56 falls into the lower quartile for the Software - Infrastructure industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ALAB vs. GDDY: A comparison of their Current Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Debt-to-Equity Ratio

ALAB

--

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

Debt-to-Equity Ratio data for ALAB is currently unavailable.

GDDY

0.45

Software - Infrastructure Industry

Max
2.56
Q3
1.12
Median
0.33
Q1
0.05
Min
0.00

GDDY’s Debt-to-Equity Ratio of 0.45 is typical for the Software - Infrastructure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ALAB vs. GDDY: A comparison of their D/E Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Interest Coverage Ratio

ALAB

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ALAB is currently unavailable.

GDDY

9.41

Software - Infrastructure Industry

Max
32.21
Q3
5.24
Median
0.95
Q1
-17.99
Min
-50.82

GDDY’s Interest Coverage Ratio of 9.41 is in the upper quartile for the Software - Infrastructure industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ALAB vs. GDDY: A comparison of their Interest Coverage against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Financial Strength at a Glance

SymbolALABGDDY
Current Ratio (TTM)13.920.56
Quick Ratio (TTM)13.260.56
Debt-to-Equity Ratio (TTM)--0.45
Debt-to-Asset Ratio (TTM)--0.01
Net Debt-to-EBITDA Ratio (TTM)4.76-0.75
Interest Coverage Ratio (TTM)--9.41

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALAB and GDDY. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALAB vs. GDDY: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALAB vs. GDDY: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALAB vs. GDDY: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ALAB

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

GDDY

0.00%

Software - Infrastructure Industry

Max
4.07%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

GDDY currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ALAB vs. GDDY: A comparison of their Dividend Yield against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Dividend Payout Ratio

ALAB

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

GDDY

0.00%

Software - Infrastructure Industry

Max
48.68%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

GDDY has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ALAB vs. GDDY: A comparison of their Payout Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Dividend at a Glance

SymbolALABGDDY
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

ALAB

357.98

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

GDDY

33.28

Software - Infrastructure Industry

Max
107.77
Q3
54.40
Median
28.10
Q1
18.03
Min
5.32

GDDY’s P/E Ratio of 33.28 is within the middle range for the Software - Infrastructure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ALAB vs. GDDY: A comparison of their P/E Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Forward P/E to Growth Ratio

ALAB

10.80

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

GDDY

1.29

Software - Infrastructure Industry

Max
8.12
Q3
3.94
Median
2.13
Q1
0.94
Min
0.01

GDDY’s Forward PEG Ratio of 1.29 is within the middle range of its peers in the Software - Infrastructure industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ALAB vs. GDDY: A comparison of their Forward PEG Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Price-to-Sales Ratio

ALAB

30.53

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

GDDY

5.43

Software - Infrastructure Industry

Max
18.25
Q3
9.05
Median
4.77
Q1
2.30
Min
0.11

GDDY’s P/S Ratio of 5.43 aligns with the market consensus for the Software - Infrastructure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ALAB vs. GDDY: A comparison of their P/S Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Price-to-Book Ratio

ALAB

14.23

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

GDDY

125.81

Software - Infrastructure Industry

Max
19.94
Q3
10.91
Median
6.33
Q1
2.95
Min
0.51

The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.

ALAB vs. GDDY: A comparison of their P/B Ratio against their respective Semiconductors and Software - Infrastructure industry benchmarks.

Valuation at a Glance

SymbolALABGDDY
Price-to-Earnings Ratio (P/E, TTM)357.9833.28
Forward PEG Ratio (TTM)10.801.29
Price-to-Sales Ratio (P/S, TTM)30.535.43
Price-to-Book Ratio (P/B, TTM)14.23125.81
Price-to-Free Cash Flow Ratio (P/FCF, TTM)138.4418.45
EV-to-EBITDA (TTM)-820.3229.39
EV-to-Sales (TTM)30.355.29