Reviewing GoDaddy (NYSE:GDDY) and CoreWeave (NASDAQ:CRWV)

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

Earnings & Valuation

This table compares CoreWeave and GoDaddy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreWeave	$7.59 billion	3.67	-$1.17 billion	($3.65)	-16.64
GoDaddy	$5.10 billion	2.62	$875.00 million	$6.74	15.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CoreWeave	-25.41%	-47.95%	-3.79%
GoDaddy	17.83%	660.96%	11.32%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CoreWeave and GoDaddy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreWeave	3	8	27	0	2.63
GoDaddy	1	9	9	0	2.42

CoreWeave currently has a consensus price target of $130.24, indicating a potential upside of 114.43%. GoDaddy has a consensus price target of $113.50, indicating a potential upside of 7.45%. Given CoreWeave’s stronger consensus rating and higher probable upside, equities analysts plainly believe CoreWeave is more favorable than GoDaddy.

Volatility & Risk

CoreWeave has a beta of 7.36, suggesting that its share price is 636% more volatile than the S&P 500. Comparatively, GoDaddy has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

90.3% of GoDaddy shares are owned by institutional investors. 24.2% of CoreWeave shares are owned by insiders. Comparatively, 0.9% of GoDaddy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

About CoreWeave

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

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.