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Reviewing GoDaddy (NYSE:GDDY) and Arbe Robotics (NASDAQ:ARBE)

Defense World ·  Sep 27, 2022 01:51

GoDaddy (NYSE:GDDY – Get Rating) and Arbe Robotics (NASDAQ:ARBE – Get Rating) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Volatility and Risk

GoDaddy has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of -0.33, meaning that its stock price is 133% less volatile than the S&P 500.

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Profitability

This table compares GoDaddy and Arbe Robotics' net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GoDaddy 8.58% -147.44% 4.82%
Arbe Robotics -1,490.24% -150.93% -62.02%

Analyst Recommendations

This is a breakdown of recent ratings for GoDaddy and Arbe Robotics, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GoDaddy 0 1 4 1 3.00
Arbe Robotics 0 0 5 0 3.00

GoDaddy presently has a consensus price target of $100.75, suggesting a potential upside of 44.69%. Arbe Robotics has a consensus price target of $16.00, suggesting a potential upside of 153.97%. Given Arbe Robotics' higher probable upside, analysts clearly believe Arbe Robotics is more favorable than GoDaddy.

Institutional & Insider Ownership

96.5% of GoDaddy shares are owned by institutional investors. Comparatively, 7.9% of Arbe Robotics shares are owned by institutional investors. 0.4% of GoDaddy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares GoDaddy and Arbe Robotics' revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GoDaddy $3.82 billion 2.86 $242.30 million $2.07 33.64
Arbe Robotics $2.25 million 176.59 -$58.09 million ($1.92) -3.28

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

Summary

GoDaddy beats Arbe Robotics on 11 of the 14 factors compared between the two stocks.

About GoDaddy

(Get Rating)

GoDaddy Inc. engages in the design and development of cloud-based technology products in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity. It also offers shared Website hosting products that provide various applications and products, such as web analytics, Secure Sockets Layer certificates, and WordPress; Website hosting on virtual private servers and virtual dedicated servers products, which allows customers to select the server configuration suited for their applications, requirements, and growth; managed hosting products to set up, monitor, maintain, secure, and patch software and servers for customers; and security products, a suite of tools designed to help secure customers' online presence. In addition, the company provides presence products, such as Websites + Marketing, a do-it-yourself mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; a range of marketing tools and services designed to help businesses acquire and engage customers, and create content, as well as search engine optimization that helps customers get their websites found on search sites; and social media management services. Further, it offers business application products, such as Microsoft Office 365, email accounts, email marketing, and Internet-based telephony services; online store capabilities that allows customers to transact business directly on their websites; GoDaddy Payments, a payment facilitator; and point-of-sale (POS) devices, as well as software for POS. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was incorporated in 2014 and is headquartered in Tempe, Arizona.

About Arbe Robotics

(Get Rating)

Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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