In the dynamic realm of software infrastructure, GoDaddy Inc. and Gen Digital Inc. emerge as prominent players shaping digital experiences and security worldwide. Both headquartered in Tempe, Arizona, they serve overlapping markets with distinct innovation strategies—GoDaddy focuses on empowering online presence through domain and hosting solutions, while Gen Digital leads in cyber safety and privacy protection. This article will guide you through their competitive strengths to identify which stock suits your investment portfolio best.
Table of contents
Companies Overview
I will begin the comparison between GoDaddy and Gen Digital by providing an overview of these two companies and their main differences.
GoDaddy Overview
GoDaddy Inc. specializes in cloud-based technology products, focusing on domain name registration and website hosting services. It offers a range of products including shared and managed hosting, security tools, marketing services, and business applications. Serving small businesses, individuals, and developers, GoDaddy aims to help customers establish and grow their online presence. The company is headquartered in Tempe, Arizona, and has a market capitalization of 14.5B USD.
Gen Digital Overview
Gen Digital Inc. provides cybersecurity and identity protection solutions globally, including Norton 360, LifeLock, and Avira Security products. Its offerings cover protection against malware, identity theft, online privacy enhancement, and reputation management. Gen Digital markets its services through various channels including retailers and telecom providers. Based in Tempe, Arizona, the company has a market cap of 16.1B USD and employs 3,400 people.
Key similarities and differences
Both GoDaddy and Gen Digital operate in the technology sector with a focus on software infrastructure but target different customer needs. GoDaddy centers on enabling digital presence through domain and hosting services, while Gen Digital focuses on cybersecurity and privacy protection. Each company serves a broad customer base, but their business models diverge in service offerings—GoDaddy on cloud and web tools, Gen Digital on cyber safety and identity solutions.
Income Statement Comparison
Below is a comparison of the latest fiscal year income statement metrics for GoDaddy Inc. and Gen Digital Inc., highlighting key financial performance indicators.
| Metric | GoDaddy Inc. (GDDY) | Gen Digital Inc. (GEN) |
|---|---|---|
| Market Cap | 14.5B | 16.1B |
| Revenue | 4.57B | 3.94B |
| EBITDA | 1.06B | 2.03B |
| EBIT | 924M | 1.61B |
| Net Income | 937M | 643M |
| EPS | 6.63 | 1.04 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
GoDaddy Inc.
GoDaddy’s revenue grew steadily from 3.3B in 2020 to 4.57B in 2024, with net income rising sharply from a loss of 495M in 2020 to 937M in 2024. Margins improved overall, with a gross margin near 64% and a net margin around 20.5%. However, the latest year showed a slowdown in net margin and EPS growth despite a 7.5% revenue increase.
Gen Digital Inc.
Gen Digital exhibited consistent revenue growth from 2.55B in 2021 to 3.94B in 2025, with net income increasing moderately from 554M to 643M. Gross and EBIT margins were strong at 80.3% and 40.8% respectively, though interest expense was relatively high at nearly 15%. The latest year showed moderate revenue growth of 3.55%, a slight net margin improvement, and a positive EPS growth of 8.4%.
Which one has the stronger fundamentals?
GoDaddy demonstrates strong margin expansion and significant net income growth over the period, but faced recent declines in net margin and EPS. Gen Digital maintains higher gross and EBIT margins and steady income growth, albeit with higher interest costs. Both companies show favorable income statements overall, with GoDaddy’s growth metrics more volatile compared to Gen’s steadier profile.
Financial Ratios Comparison
The following table compares key financial ratios for GoDaddy Inc. and Gen Digital Inc. based on the most recent fiscal year data available for each company.
| Ratios | GoDaddy Inc. (2024) | Gen Digital Inc. (2025) |
|---|---|---|
| ROE | 135.4% | 28.3% |
| ROIC | 16.0% | 7.8% |
| P/E | 29.8 | 25.4 |
| P/B | 40.3 | 7.2 |
| Current Ratio | 0.72 | 0.51 |
| Quick Ratio | 0.72 | 0.51 |
| D/E | 5.63 | 3.66 |
| Debt-to-Assets | 47.3% | 53.7% |
| Interest Coverage | 5.64 | 2.79 |
| Asset Turnover | 0.56 | 0.25 |
| Fixed Asset Turnover | 22.2 | 36.1 |
| Payout Ratio | 0% | 48.7% |
| Dividend Yield | 0% | 1.9% |
Interpretation of the Ratios
GoDaddy Inc.
GoDaddy exhibits strong profitability with a net margin of 20.49% and an exceptionally high return on equity at 135.37%, indicating efficient use of shareholder funds. However, liquidity ratios are weak, with a current ratio of 0.72, and leverage is high, evidenced by a debt-to-equity ratio of 5.63. The company does not pay dividends, reflecting a potential focus on reinvestment or growth rather than immediate shareholder returns.
Gen Digital Inc.
Gen Digital shows solid net margin at 16.34% and a respectable return on equity of 28.34%, though lower than GoDaddy’s. The company’s liquidity is weak with a current ratio of 0.51, and leverage metrics are unfavorable, including a debt-to-assets ratio of 53.66%. Gen Digital pays a modest dividend with a 1.92% yield, suggesting some shareholder return despite the challenges in liquidity and leverage.
Which one has the best ratios?
GoDaddy’s ratios indicate stronger profitability and efficiency, but its liquidity and leverage pose concerns. Gen Digital’s profitability is solid but less impressive, with weaker liquidity and higher leverage alongside a modest dividend yield. Overall, GoDaddy’s ratio profile appears more favorable, while Gen Digital faces more unfavorable metrics, leading to a slightly less attractive ratio evaluation.
Strategic Positioning
This section compares the strategic positioning of GoDaddy Inc. and Gen Digital Inc., including Market position, Key segments, and exposure to disruption:
GoDaddy Inc.
- Market position and competitive pressure
- Key segments and business drivers
- Exposure to technological disruption
Gen Digital Inc.
- Market cap $14.5B, focuses on cloud-based tech products, moderate competitive pressure
- Core Platform ($2.9B) and Applications & Commerce ($1.65B) drive revenue
- Offers cloud hosting, marketing, security tools, adapting to digital presence needs
GoDaddy Inc. vs Gen Digital Inc. Positioning
GoDaddy pursues a diversified approach across domains, hosting, marketing, and security, leveraging cloud infrastructure. Gen Digital concentrates on cyber safety and identity protection, focusing on consumer security products with less diversification but specialized offerings.
Which has the best competitive advantage?
GoDaddy demonstrates a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. Gen Digital shows a very unfavorable moat with declining ROIC, signaling value destruction and weaker competitive sustainability.
Stock Comparison
The stock prices of GoDaddy Inc. and Gen Digital Inc. have exhibited distinct movements over the past year, with GoDaddy showing a bearish trajectory and Gen Digital maintaining a bullish stance despite recent slight declines.
Trend Analysis
GoDaddy Inc. experienced a bearish trend over the past 12 months with a price decline of 9.09%, showing deceleration in the downward movement and a high volatility indicated by a standard deviation of 27.35. The stock reached a high of 212.65 and a low of 104.46.
Gen Digital Inc. showed a bullish trend over the same period, with a 17.89% price increase and decelerating momentum. The stock demonstrated low volatility with a standard deviation of 2.59, reaching a high of 31.58 and a low of 20.03.
Comparing both, Gen Digital has delivered the highest market performance over the past year, contrasting with GoDaddy’s notable bearish decline.
Target Prices
The current analyst consensus indicates a positive outlook for both GoDaddy Inc. and Gen Digital Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GoDaddy Inc. | 182 | 70 | 143.33 |
| Gen Digital Inc. | 32 | 31 | 31.5 |
Analysts expect GoDaddy’s stock to appreciate significantly from its current price of $104.46, while Gen Digital’s target consensus suggests a moderate increase from $26.10. Overall, the targets imply bullish sentiment for both stocks.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GoDaddy Inc. and Gen Digital Inc.:
Rating Comparison
GoDaddy Inc. Rating
- Rating: B+, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable valuation.
- ROE Score: 5, reflecting very efficient profit generation.
- ROA Score: 4, considered favorable in asset utilization.
- Debt To Equity Score: 1, rated very unfavorable due to high financial risk.
- Overall Score: 3, assessed as moderate overall financial standing.
Gen Digital Inc. Rating
- Rating: B, also rated Very Favorable by analysts.
- Discounted Cash Flow Score: 5, showing very favorable valuation.
- ROE Score: 5, equally reflecting very efficient profit generation.
- ROA Score: 3, moderate effectiveness in asset utilization.
- Debt To Equity Score: 1, also very unfavorable indicating financial risk.
- Overall Score: 3, equally moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, GoDaddy Inc. holds a slightly better rating (B+) compared to Gen Digital Inc. (B). Both share similar very favorable scores in discounted cash flow and ROE, but GoDaddy shows a more favorable ROA score. Both face very unfavorable debt to equity scores, resulting in equal overall moderate scores.
Scores Comparison
The comparison of GoDaddy and Gen Digital’s financial stability and strength scores is as follows:
GoDaddy Scores
- Altman Z-Score: 1.53, indicating financial distress zone risk
- Piotroski Score: 8, reflecting very strong financial health
Gen Digital Scores
- Altman Z-Score: 1.25, indicating financial distress zone risk
- Piotroski Score: 6, reflecting average financial health
Which company has the best scores?
GoDaddy has a higher Piotroski score, signaling stronger financial health compared to Gen Digital. Both companies are in the Altman Z-Score distress zone, indicating elevated bankruptcy risk.
Grades Comparison
The following presents a comparison of credible grades assigned to GoDaddy Inc. and Gen Digital Inc.:
GoDaddy Inc. Grades
This table summarizes recent grades and actions from recognized grading companies 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 |
The overall grades for GoDaddy Inc. range from Hold/Neutral to Buy/Overweight, with a consensus leaning toward Buy.
Gen Digital Inc. Grades
This table presents verified grades and actions from recognized grading companies for Gen Digital Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Sector Perform | 2025-11-07 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-02 |
| Barclays | Maintain | Equal Weight | 2025-08-08 |
| Wells Fargo | Maintain | Overweight | 2025-08-08 |
| RBC Capital | Maintain | Sector Perform | 2025-08-08 |
| Barclays | Maintain | Equal Weight | 2025-07-14 |
| RBC Capital | Maintain | Sector Perform | 2025-05-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-04-16 |
| RBC Capital | Maintain | Sector Perform | 2025-01-31 |
Gen Digital Inc.’s grades predominantly range from Sector Perform/Equal Weight to Outperform/Overweight, reflecting a mixed but generally positive view.
Which company has the best grades?
GoDaddy Inc. has received more Buy and Overweight ratings compared to Gen Digital Inc.’s Sector Perform and Equal Weight grades. This suggests GoDaddy’s outlook is perceived slightly more favorable, potentially impacting investor confidence and stock valuation differently.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of GoDaddy Inc. (GDDY) and Gen Digital Inc. (GEN) based on recent financial and operational data:
| Criterion | GoDaddy Inc. (GDDY) | Gen Digital Inc. (GEN) |
|---|---|---|
| Diversification | Moderate: Core Platform and Applications and Commerce segments generating $2.9B and $1.65B respectively in 2024 | High: Focused on Cyber Safety with $3.9B revenue in 2025, minimal legacy revenue |
| Profitability | Strong profitability with 20.5% net margin and ROIC of 16.0% (favorable) | Moderate profitability with 16.3% net margin and ROIC of 7.8% (neutral) |
| Innovation | Consistent investment in platform expansion and commerce applications | Focus on cybersecurity innovation, but declining ROIC indicates challenges |
| Global presence | Solid global presence with significant platform usage worldwide | Strong global cyber safety presence but facing competitive pressures |
| Market Share | Leading market position in domain registration and web hosting | Significant share in consumer cybersecurity with growing revenues |
Key takeaways: GoDaddy demonstrates a durable competitive advantage with strong profitability and growing returns on invested capital, while Gen Digital struggles with declining ROIC and value destruction despite a substantial cybersecurity market presence. Investors should weigh GoDaddy’s stable growth against Gen’s risks.
Risk Analysis
Below is a comparative table of key risks for GoDaddy Inc. (GDDY) and Gen Digital Inc. (GEN) based on the most recent financial year data:
| Metric | GoDaddy Inc. (GDDY) | Gen Digital Inc. (GEN) |
|---|---|---|
| Market Risk | Beta 0.95, moderate volatility | Beta 1.08, slightly higher volatility |
| Debt level | High debt-to-equity ratio (5.63), moderate debt-to-assets (47.3%) | High debt-to-equity (3.66) and high debt-to-assets (53.7%) |
| Regulatory Risk | Moderate, tech sector compliance | Moderate, cybersecurity regulations evolving |
| Operational Risk | Managed hosting and payment processing complexities | Cybersecurity threats and software updates critical |
| Environmental Risk | Low, primarily digital services | Low, digital cybersecurity focus |
| Geopolitical Risk | Moderate, US-based with international reach | Moderate, global consumer markets exposure |
Synthesis: Both companies face significant financial leverage risk, with debt levels that may pressure cash flows, especially Gen Digital with weaker interest coverage. Market risk is moderate, with Gen Digital showing slightly higher volatility. Operational risks are notable due to the technology and cybersecurity demands. The most impactful risk is high debt levels combined with moderate interest coverage, which could affect financial stability under adverse market conditions.
Which Stock to Choose?
GoDaddy Inc. (GDDY) shows a favorable income statement with strong profitability and a growing ROIC well above its WACC, indicating durable value creation. Its financial ratios are mixed, with excellent returns but weaknesses in liquidity and leverage. The company holds a very favorable B+ rating.
Gen Digital Inc. (GEN) demonstrates favorable income metrics with solid margins but a declining ROIC below its WACC, signaling value destruction. Its financial ratios reveal more unfavorable aspects, including higher debt and weaker asset turnover. The company maintains a very favorable B rating overall.
Investors prioritizing companies with durable competitive advantages and improving profitability might find GoDaddy’s metrics more appealing, while those accepting higher risk and seeking exposure to a company with recent growth could consider Gen Digital. Each stock’s profile may suit different investment strategies depending on risk tolerance and focus.
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 Gen Digital Inc. to enhance your investment decisions:
