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

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

Company Overview

APP’s market capitalization of 115.62 billion USD is substantially larger than GDDY’s 25.27 billion USD, indicating a significant difference in their market valuations.

APP’s beta of 2.53 points to significantly higher volatility compared to GDDY (beta: 1.07), suggesting APP has greater potential for both gains and losses relative to market movements.

SymbolAPPGDDY
Company NameAppLovin CorporationGoDaddy Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSoftware - Infrastructure
CEOAdam Arash ForoughiAmanpal Singh Bhutani
Price341.64 USD177.32 USD
Market Cap115.62 billion USD25.27 billion USD
Beta2.531.07
ExchangeNASDAQNYSE
IPO DateApril 15, 2021March 31, 2015
ADRNoNo

Historical Performance

This chart compares the performance of APP 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.

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

Profitability

Return on Equity

APP

224.68%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

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

Return on Invested Capital

APP

48.77%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

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.

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

Net Profit Margin

APP

37.39%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

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.

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

Operating Profit Margin

APP

42.86%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

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

Profitability at a Glance

SymbolAPPGDDY
Return on Equity (TTM)224.68%214.84%
Return on Assets (TTM)33.64%9.63%
Return on Invested Capital (TTM)48.77%17.22%
Net Profit Margin (TTM)37.39%16.21%
Operating Profit Margin (TTM)42.86%20.85%
Gross Profit Margin (TTM)77.40%62.55%

Financial Strength

Current Ratio

APP

1.68

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.

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.

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

Debt-to-Equity Ratio

APP

6.45

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

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.

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

Interest Coverage Ratio

APP

7.41

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.

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.

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

Financial Strength at a Glance

SymbolAPPGDDY
Current Ratio (TTM)1.680.56
Quick Ratio (TTM)1.680.56
Debt-to-Equity Ratio (TTM)6.450.45
Debt-to-Asset Ratio (TTM)0.650.01
Net Debt-to-EBITDA Ratio (TTM)1.20-0.75
Interest Coverage Ratio (TTM)7.419.41

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

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

Dividend

Dividend Yield

APP

0.00%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

APP 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.

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

Dividend Payout Ratio

APP

0.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

APP 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.

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

Dividend at a Glance

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

Valuation

Price-to-Earnings Ratio

APP

60.47

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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.

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

Forward P/E to Growth Ratio

APP

2.46

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

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.

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

Price-to-Sales Ratio

APP

22.51

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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.

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

Price-to-Book Ratio

APP

201.77

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

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

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.

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

Valuation at a Glance

SymbolAPPGDDY
Price-to-Earnings Ratio (P/E, TTM)60.4733.28
Forward PEG Ratio (TTM)2.461.29
Price-to-Sales Ratio (P/S, TTM)22.515.43
Price-to-Book Ratio (P/B, TTM)201.77125.81
Price-to-Free Cash Flow Ratio (P/FCF, TTM)45.6418.45
EV-to-EBITDA (TTM)45.1629.39
EV-to-Sales (TTM)23.135.29