GoDaddy (NYSE:GDDY) versus VNET Group (NASDAQ:VNET) Head-To-Head Review

GoDaddy (NYSE:GDDY) and VNET Group (NASDAQ:VNET) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

90.3% of GoDaddy shares are owned by institutional investors. Comparatively, 72.8% of VNET Group shares are owned by institutional investors. 0.9% of GoDaddy shares are owned by insiders. Comparatively, 12.1% of VNET Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares GoDaddy and VNET Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoDaddy	$4.95 billion	2.58	$875.00 million	$6.74	14.96
VNET Group	$1.42 billion	1.19	-$36.01 million	($1.42)	-4.40

GoDaddy has higher revenue and earnings than VNET Group. VNET Group is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for GoDaddy and VNET Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoDaddy	1	8	9	0	2.44
VNET Group	1	1	4	0	2.50

GoDaddy currently has a consensus price target of $110.07, indicating a potential upside of 9.18%. VNET Group has a consensus price target of $16.90, indicating a potential upside of 170.58%. Given VNET Group’s stronger consensus rating and higher possible upside, analysts plainly believe VNET Group is more favorable than GoDaddy.

Volatility & Risk

GoDaddy has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, VNET Group has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares GoDaddy and VNET Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoDaddy	17.83%	660.96%	11.32%
VNET Group	-22.29%	-36.25%	-4.43%

Summary

GoDaddy beats VNET Group on 11 of the 14 factors compared between the two stocks.

About GoDaddy

GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates through two segments: Applications and Commerce, and Core Platform. The Applications and Commerce segment provides applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to easily build and manage a faster WordPress site; Managed WooCommerce Stores to sell anything and anywhere online; and marketing tools and services, such as GoDaddy Studio mobile application, search engine optimization, Meta and Google My Business, and email and social media marketing designed to help businesses acquire and engage customers and create content. The segment also offers connected commerce comprising Smart Terminal, a dual screen all-in-one Point-of-Sale system that allows customers to manage in-store inventory and product catalogs and take payments; GoDaddy Payments, a payment facilitator that enables customers to accept all major forms of payments; and email service plans with a multi-feature web interface, and Microsoft Office 365 accounts that connects to customers’ domains. The Core Platform segment offers domain products, including primary registrations, domain aftermarket platform, and domain name add-ons, as well as GoDaddy Registry, a provider of domain name registry services; and hosting and security services comprising shared website hosting, virtual private servers, and managed wordpress hosting services, as well as security products with a comprehensive suite of tools designed to help secure customers’ online presence. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was founded in 1997 and is headquartered in Tempe, Arizona.

About VNET Group

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.