In the fast-evolving technology sector, GoDaddy Inc. and Arqit Quantum Inc. represent two distinct yet overlapping players in software infrastructure. GoDaddy, a US-based giant, focuses on cloud-based digital identity and web services, while Arqit, a UK cybersecurity innovator, leverages quantum technology for encryption. This article will analyze their strategies, market positions, and growth potential to help you decide which company could be a more compelling addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between GoDaddy and Arqit Quantum by providing an overview of these two companies and their main differences.
GoDaddy Overview
GoDaddy Inc. is a US-based technology company specializing in cloud-based infrastructure software products. Its mission focuses on enabling customers to establish and secure their digital presence through domain registration, website hosting, marketing tools, and security services. Serving small businesses, individuals, and developers, GoDaddy operates with a market cap of approximately 14.5B USD and employs over 5,500 people worldwide.
Arqit Quantum Overview
Arqit Quantum Inc., headquartered in London, UK, is a technology firm providing cybersecurity solutions through satellite and terrestrial platforms. It offers QuantumCloud, a product that allows devices to generate encryption keys securely via lightweight software agents. With a market cap near 416M USD and a workforce of 82 employees, Arqit focuses on cutting-edge encryption technologies within the cybersecurity sector.
Key similarities and differences
Both GoDaddy and Arqit operate in the software infrastructure industry within the technology sector, offering services that enhance digital security and presence. However, GoDaddy targets a broad customer base with a wide range of cloud and hosting products, while Arqit specializes in quantum encryption technology for cybersecurity. Their market caps and employee sizes differ significantly, reflecting distinct scales and operational focuses.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for GoDaddy Inc. and Arqit Quantum Inc. based on their most recent fiscal year data.
| Metric | GoDaddy Inc. (GDDY) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Cap | 14.5B | 416M |
| Revenue | 4.57B | 530K |
| EBITDA | 1.06B | -36.8M |
| EBIT | 924M | -37.6M |
| Net Income | 937M | -35.3M |
| EPS | 6.63 | -2.56 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
GoDaddy Inc.
From 2020 to 2024, GoDaddy showed steady revenue growth from $3.3B to $4.57B, with net income rising significantly from a loss of $495M in 2020 to $937M in 2024. Margins improved overall, with gross margin at 63.9% and net margin at 20.5%. In 2024, revenue growth slowed to 7.5%, while EBIT margin rose sharply, but net margin and EPS declined.
Arqit Quantum Inc.
Arqit experienced rapid revenue growth, surging from $48K in 2021 to $530K in 2025, with net income improving from a $272M loss to a $35M loss. Margins remain negative, with a gross margin of -43.4% and a net margin of -6668%. The latest year saw strong revenue and gross profit growth, though EBIT margin remained deeply negative, reflecting ongoing operational challenges.
Which one has the stronger fundamentals?
GoDaddy demonstrates stronger fundamentals with consistent positive margins, growing revenue, and improving profitability despite a recent dip in net margin and EPS. Arqit shows impressive growth rates but remains unprofitable with large negative margins and net losses. Overall, GoDaddy’s stable profitability and margin improvements contrast with Arqit’s continued operational losses.
Financial Ratios Comparison
The table below presents a comparison of key financial ratios for GoDaddy Inc. and Arqit Quantum Inc. based on their most recent fiscal year data, offering insights into profitability, liquidity, leverage, and efficiency.
| Ratios | GoDaddy Inc. (2024) | Arqit Quantum Inc. (2025) |
|---|---|---|
| ROE | 135.37% | -129.77% |
| ROIC | 16.02% | -127.45% |
| P/E | 29.76 | -15.12 |
| P/B | 40.28 | 19.62 |
| Current Ratio | 0.72 | 2.69 |
| Quick Ratio | 0.72 | 2.69 |
| D/E | 5.63 | 0.03 |
| Debt-to-Assets | 47.29% | 1.68% |
| Interest Coverage | 5.64 | -802.90 |
| Asset Turnover | 0.56 | 0.01 |
| Fixed Asset Turnover | 22.22 | 0.74 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
GoDaddy Inc.
GoDaddy Inc. presents a mixed ratio profile with strong profitability indicators, including a high return on equity of 135.37% and a solid return on invested capital at 16.02%. However, liquidity ratios such as the current and quick ratios are weak at 0.72, raising concerns about short-term financial flexibility. The company does not pay dividends, likely prioritizing reinvestment or growth strategies.
Arqit Quantum Inc.
Arqit Quantum Inc. shows predominantly weak financial ratios, including a large negative net margin of -6668.49% and a negative return on equity of -129.77%, indicating ongoing losses. Its liquidity ratios are strong with a current ratio of 2.69, and its low debt-to-equity ratio suggests limited leverage. The company does not distribute dividends, consistent with its high-growth or reinvestment phase.
Which one has the best ratios?
GoDaddy Inc. demonstrates stronger profitability and return metrics despite some liquidity concerns, whereas Arqit Quantum Inc. struggles with significant losses but maintains solid liquidity and low leverage. Overall, GoDaddy’s ratios are more favorable in terms of profitability, while Arqit’s are weaker but reflect its different growth and investment stage.
Strategic Positioning
This section compares the strategic positioning of GoDaddy Inc. and Arqit Quantum Inc., focusing on market position, key segments, and exposure to technological disruption:
GoDaddy Inc.
- Large market cap of 14.5B with established competitive pressure in software infrastructure
- Key segments include Core Platform (2.92B) and Applications & Commerce (1.65B) driving revenue
- Operates in cloud-based technology with moderate beta 0.95; exposed to evolving internet tech
Arqit Quantum Inc.
- Small market cap of 416M with higher volatility and niche cybersecurity focus
- Focused on cybersecurity via QuantumCloud software for encryption key generation
- Operates with high beta 2.41; depends on quantum encryption technology development
GoDaddy Inc. vs Arqit Quantum Inc. Positioning
GoDaddy’s diversified portfolio across domain registration, hosting, and business applications contrasts with Arqit’s concentrated focus on quantum cybersecurity. GoDaddy benefits from scale and multiple revenue drivers, while Arqit’s niche offers potential innovation but higher market risk.
Which has the best competitive advantage?
GoDaddy demonstrates a very favorable moat with ROIC exceeding WACC by 8.6% and growing profitability, indicating a durable competitive advantage. Arqit shows a slightly unfavorable moat, shedding value despite increasing ROIC, reflecting weaker competitive positioning.
Stock Comparison
The stock price chart highlights significant divergences in trading dynamics and price movements over the past 12 months, with one company experiencing a strong bullish run while the other faced sustained bearish pressure, both showing deceleration in trend momentum.
Trend Analysis
GoDaddy Inc. (GDDY) exhibited a bearish trend over the past year with a price decline of 9.09%, accompanied by decelerating downward momentum and a high volatility level indicated by a standard deviation of 27.35. The stock ranged between 104.46 and 212.65 in price.
Arqit Quantum Inc. (ARQQ) demonstrated a bullish trend with a 93.6% price increase over the same period, although the trend decelerated. Volatility was moderate with a standard deviation of 11.75, and prices moved between 4.19 and 49.92.
Comparing both stocks, Arqit Quantum delivered the highest market performance over the past year, significantly outperforming GoDaddy despite recent short-term declines in both equities.
Target Prices
Analysts provide a clear target price consensus for both GoDaddy Inc. and Arqit Quantum Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GoDaddy Inc. | 182 | 70 | 143.33 |
| Arqit Quantum Inc. | 60 | 60 | 60 |
The consensus target for GoDaddy suggests a significant upside from the current price of 104.46 USD, with a wide range indicating some analyst caution. Arqit’s target price of 60 USD is more than double its current 26.6 USD, reflecting high growth expectations but also higher risk.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GoDaddy Inc. and Arqit Quantum Inc.:
Rating Comparison
GoDaddy Inc. Rating
- Rating: B+, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 5, Very Favorable rating.
- ROE Score: 5, indicating very favorable profitability.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk.
- Overall Score: 3, moderate overall financial standing.
Arqit Quantum Inc. Rating
- Rating: C, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 2, Moderate rating.
- ROE Score: 1, indicating very unfavorable profitability.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 4, favorable financial risk.
- Overall Score: 2, moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, GoDaddy Inc. holds a higher rating (B+) and superior scores in discounted cash flow, ROE, and ROA, despite a weaker debt-to-equity score. Arqit Quantum Inc. has a lower overall rating and weaker profitability metrics but stronger debt management.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for GoDaddy Inc. and Arqit Quantum Inc.:
GoDaddy Inc. Scores
- Altman Z-Score of 1.53 places GoDaddy in distress zone, indicating higher bankruptcy risk.
- Piotroski Score of 8 shows GoDaddy has very strong financial health and value potential.
Arqit Quantum Inc. Scores
- Altman Z-Score of -0.22 places Arqit in distress zone, indicating very high bankruptcy risk.
- Piotroski Score of 2 indicates Arqit has very weak financial health and investment potential.
Which company has the best scores?
GoDaddy’s Altman Z-Score and Piotroski Score both indicate stronger financial health compared to Arqit, which shows higher bankruptcy risk and weaker financial strength.
Grades Comparison
The following is a detailed comparison of the stock grades assigned to GoDaddy Inc. and Arqit Quantum Inc.:
GoDaddy Inc. Grades
This table summarizes recent reliable grades from well-known financial institutions for GoDaddy Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2026-01-15 |
| Cantor Fitzgerald | Maintain | Neutral | 2026-01-08 |
| Jefferies | Maintain | Hold | 2026-01-05 |
| B. Riley Securities | Maintain | Buy | 2025-10-31 |
| Evercore ISI Group | Maintain | In Line | 2025-10-31 |
| Benchmark | Maintain | Buy | 2025-10-31 |
| JP Morgan | Maintain | Overweight | 2025-10-31 |
| Citigroup | Maintain | Buy | 2025-10-31 |
| UBS | Maintain | Neutral | 2025-10-31 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-06 |
GoDaddy’s grades show a mix of Buy and Hold recommendations with several Neutral and Equal Weight ratings, indicating a generally moderate to positive outlook.
Arqit Quantum Inc. Grades
This table presents consistent recent grades exclusively from HC Wainwright & Co. for Arqit Quantum Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| HC Wainwright & Co. | Maintain | Buy | 2025-10-13 |
| HC Wainwright & Co. | Maintain | Buy | 2025-09-18 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-31 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-06 |
| HC Wainwright & Co. | Maintain | Buy | 2024-07-11 |
| HC Wainwright & Co. | Maintain | Buy | 2024-05-29 |
| HC Wainwright & Co. | Maintain | Buy | 2024-05-15 |
| HC Wainwright & Co. | Maintain | Buy | 2023-11-22 |
| HC Wainwright & Co. | Maintain | Buy | 2023-09-27 |
| HC Wainwright & Co. | Maintain | Buy | 2023-09-26 |
Arqit Quantum’s grades are uniformly Buy from a single grading company, showing consistent positive recommendations over multiple dates.
Which company has the best grades?
GoDaddy Inc. has a broader range of grades from multiple reputable firms, showing a balanced view between Buy and Hold ratings. Arqit Quantum Inc. receives uniformly positive Buy grades but only from one grading company. Investors might interpret GoDaddy’s diverse opinions as a more nuanced risk profile, while Arqit’s consistent Buy ratings suggest strong endorsement from a single source.
Strengths and Weaknesses
Below is a comparison table highlighting key strengths and weaknesses of GoDaddy Inc. (GDDY) and Arqit Quantum Inc. (ARQQ) based on their latest financial performance and strategic positioning.
| Criterion | GoDaddy Inc. (GDDY) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Diversification | Strong revenue diversification across Core Platform ($2.92B) and Applications & Commerce ($1.65B) segments, reducing dependency on a single source. | Limited diversification; primarily focused on quantum encryption technology, exposing it to niche market risks. |
| Profitability | High profitability with a net margin of 20.49%, ROIC of 16.02%, and a favorable ROE of 135.37%, indicating efficient capital use and value creation. | Negative profitability metrics: net margin at -6668.49%, ROIC at -127.45%, and negative ROE, reflecting ongoing losses and value destruction. |
| Innovation | Continuous investment in platform improvements and commerce applications supports innovation but at a mature tech company pace. | Positioned in a highly innovative field of quantum security with growing ROIC, signaling improving operational efficiency despite current losses. |
| Global presence | Established global footprint with a diversified client base and brand recognition in web services. | Smaller, less globalized presence typical of emerging tech companies; market penetration still developing. |
| Market Share | Substantial market share in domain registration and hosting services, benefiting from economies of scale. | Early-stage market share in quantum encryption, competing in a nascent and specialized sector. |
In summary, GoDaddy demonstrates strong profitability and diversification with a durable competitive advantage, making it a more stable choice for investors. Arqit, while innovative with improving profitability trends, currently shows significant financial challenges and higher risk, suggesting cautious consideration for risk-tolerant investors.
Risk Analysis
Below is a summary table highlighting key risks for GoDaddy Inc. and Arqit Quantum Inc. based on the most recent financial and market data available in 2026.
| Metric | GoDaddy Inc. (GDDY) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Risk | Moderate (Beta 0.95) | High (Beta 2.41) |
| Debt level | High leverage (D/E 5.63) | Very low leverage (D/E 0.03) |
| Regulatory Risk | Moderate (Tech and privacy regulations) | Elevated (Quantum tech and cybersecurity regulations) |
| Operational Risk | Medium (Cloud infrastructure complexity) | High (Early-stage tech and scalability challenges) |
| Environmental Risk | Low (Technology sector typical) | Low (Technology sector typical) |
| Geopolitical Risk | Moderate (US-based with international exposure) | High (UK-based, sensitive to Brexit and global trade) |
The most impactful risks are GoDaddy’s high debt level, which increases financial vulnerability despite solid profitability, and Arqit’s high market volatility coupled with operational challenges as an emerging quantum cybersecurity player. Regulatory and geopolitical uncertainties also weigh more heavily on Arqit given its UK base and novel technology domain. Investors should weigh growth potential against these heightened risks.
Which Stock to Choose?
GoDaddy Inc. (GDDY) shows favorable income growth with a 37.88% revenue increase over 2020-2024 and strong profitability metrics including a 20.49% net margin and 135.37% ROE. Despite a high debt-to-equity ratio and low liquidity ratios, the company maintains a very favorable moat rating and a B+ overall rating.
Arqit Quantum Inc. (ARQQ) exhibits rapid revenue growth of 1006.24% over 2021-2025 but suffers from significant losses and negative profitability ratios, including a -6668.49% net margin and -129.77% ROE. The company has strong liquidity and low debt, yet its overall financial ratios and ratings remain unfavorable with a C rating and a slightly unfavorable moat.
Investors with a risk-tolerant profile focusing on high-growth potential might find ARQQ’s rapid top-line expansion appealing, while those prioritizing financial stability and proven profitability could see GDDY’s solid income statement and moat as more favorable indicators for quality investing.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of GoDaddy Inc. and Arqit Quantum Inc. to enhance your investment decisions:
