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

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

Company Profile

SymbolGDDYU
Company NameGoDaddy Inc.Unity Software Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesSoftware
Market Capitalization19.84 billion USD16.03 billion USD
ExchangeNYSENYSE
Listing DateMarch 31, 2015September 18, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GDDY and U 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.

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

Historical Performance at a Glance

SymbolGDDYU
5-Day Price Return-4.61%13.02%
13-Week Price Return-23.36%73.72%
26-Week Price Return-32.07%79.05%
52-Week Price Return-9.55%149.44%
Month-to-Date Return-11.30%13.73%
Year-to-Date Return-27.39%68.85%
10-Day Avg. Volume2.99M17.83M
3-Month Avg. Volume1.64M13.19M
3-Month Volatility30.05%71.62%
Beta1.012.34

Profitability

Return on Equity (TTM)

GDDY

195.66%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

GDDY’s Return on Equity of 195.66% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

U

-13.62%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

U has a negative Return on Equity of -13.62%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

GDDY vs. U: A comparison of their Return on Equity (TTM) against their respective IT Services and Software industry benchmarks.

Net Profit Margin (TTM)

GDDY

17.01%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

A Net Profit Margin of 17.01% places GDDY in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

U

-24.38%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

U has a negative Net Profit Margin of -24.38%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

GDDY vs. U: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Software industry benchmarks.

Operating Profit Margin (TTM)

GDDY

21.50%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

An Operating Profit Margin of 21.50% places GDDY in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

U

-25.56%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

U has a negative Operating Profit Margin of -25.56%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

GDDY vs. U: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Software industry benchmarks.

Profitability at a Glance

SymbolGDDYU
Return on Equity (TTM)195.66%-13.62%
Return on Assets (TTM)10.00%-6.47%
Net Profit Margin (TTM)17.01%-24.38%
Operating Profit Margin (TTM)21.50%-25.56%
Gross Profit Margin (TTM)63.97%74.43%

Financial Strength

Current Ratio (MRQ)

GDDY

0.64

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

GDDY’s Current Ratio of 0.64 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

U

2.73

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

U’s Current Ratio of 2.73 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

GDDY vs. U: A comparison of their Current Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GDDY

9.37

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

With a Debt-to-Equity Ratio of 9.37, GDDY operates with exceptionally high leverage compared to the IT Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

U

0.70

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

U’s Debt-to-Equity Ratio of 0.70 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GDDY vs. U: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Interest Coverage Ratio (TTM)

GDDY

5.84

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

GDDY’s Interest Coverage Ratio of 5.84 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

U

-27.34

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

U has a negative Interest Coverage Ratio of -27.34. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

GDDY vs. U: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Financial Strength at a Glance

SymbolGDDYU
Current Ratio (MRQ)0.642.73
Quick Ratio (MRQ)0.412.60
Debt-to-Equity Ratio (MRQ)9.370.70
Interest Coverage Ratio (TTM)5.84-27.34

Growth

Revenue Growth

GDDY vs. U: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GDDY vs. U: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GDDY

0.00%

IT Services Industry

Max
2.80%
Q3
1.74%
Median
0.62%
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.

U

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

U 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 vs. U: A comparison of their Dividend Yield (TTM) against their respective IT Services and Software industry benchmarks.

Dividend Payout Ratio (TTM)

GDDY

0.00%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
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.

U

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

U 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 vs. U: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Dividend at a Glance

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

Valuation

Price-to-Earnings Ratio (TTM)

GDDY

24.51

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

GDDY’s P/E Ratio of 24.51 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

U

--

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

P/E Ratio data for U is currently unavailable.

GDDY vs. U: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

GDDY

4.17

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

GDDY’s P/S Ratio of 4.17 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

U

8.91

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

U’s P/S Ratio of 8.91 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GDDY vs. U: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

GDDY

63.44

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

At 63.44, GDDY’s P/B Ratio is at an extreme premium to the IT Services 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.

U

3.16

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

U’s P/B Ratio of 3.16 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

GDDY vs. U: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Valuation at a Glance

SymbolGDDYU
Price-to-Earnings Ratio (TTM)24.51--
Price-to-Sales Ratio (TTM)4.178.91
Price-to-Book Ratio (MRQ)63.443.16
Price-to-Free Cash Flow Ratio (TTM)13.6446.29