In the dynamic landscape of technology infrastructure, GoDaddy Inc. and Informatica Inc. stand out as key players with distinct yet overlapping market focuses. GoDaddy specializes in cloud-based digital identity and hosting solutions, while Informatica leads in AI-powered data management platforms. Both companies harness innovation to serve enterprise and small business needs. This article will help you decide which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between GoDaddy and Informatica by providing an overview of these two companies and their main differences.
GoDaddy Overview
GoDaddy Inc. focuses on designing and developing cloud-based technology products primarily for domain name registration and website hosting. It offers a range of services including shared hosting, managed hosting, security products, and business applications such as Microsoft Office 365 and payment solutions. The company serves small businesses, individuals, developers, and domain investors, positioning itself as a key provider of digital identity and online presence tools.
Informatica Overview
Informatica Inc. develops an AI-powered platform that manages and unifies enterprise data across multi-cloud and hybrid environments. Its product suite includes data integration, API management, data quality, master data management, and governance tools, aimed at enabling accurate and compliant data use for analytics and business processes. Informatica targets large enterprises requiring scalable data management solutions to optimize their data assets.
Key similarities and differences
Both GoDaddy and Informatica operate in the software infrastructure sector within the technology industry, focusing on cloud-based solutions. GoDaddy emphasizes digital identity and website-related services for smaller clients, while Informatica specializes in complex data management platforms for enterprise customers. Their business models differ in customer focus and product scope, with GoDaddy offering web presence and e-commerce tools, and Informatica delivering data integration and governance technologies.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for GoDaddy Inc. and Informatica Inc. for their most recent fiscal year, 2024.
| Metric | GoDaddy Inc. (GDDY) | Informatica Inc. (INFA) |
|---|---|---|
| Market Cap | 14.5B | 7.5B |
| Revenue | 4.57B | 1.64B |
| EBITDA | 1.06B | 339M |
| EBIT | 924M | 199M |
| Net Income | 937M | 9.9M |
| EPS | 6.63 | 0.033 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
GoDaddy Inc.
GoDaddy’s revenue rose steadily from 3.3B in 2020 to 4.57B in 2024, showing a 37.88% growth over five years. Net income improved sharply from a loss of 495M in 2020 to 937M in 2024, despite a dip from 1.37B in 2023. Margins remain strong with a gross margin of 63.9% and EBIT margin of 20.2%. The latest year saw EBIT grow 58.5%, though net margin declined by 36.6%.
Informatica Inc.
Informatica’s revenue increased from 1.32B in 2020 to 1.64B in 2024, a 23.95% growth over the period. Net income turned positive in 2024 at 9.9M after previous losses, with net margin stabilizing at 0.61%. Gross margin is high at 80.1%, and EBIT margin improved to 12.15%. The latest year saw EBIT jump 168.4%, net margin more than doubled, and EPS increased by 107.4%.
Which one has the stronger fundamentals?
GoDaddy displays stronger absolute profitability with higher net income and margins, exhibiting consistent revenue growth and favorable margin trends. Informatica shows solid margin improvement and a positive turnaround in net income, though profitability remains modest. Both have favorable income statement evaluations, but GoDaddy’s larger scale and margin stability suggest comparatively stronger fundamentals.
Financial Ratios Comparison
The table below presents the most recent financial ratios for GoDaddy Inc. and Informatica Inc., providing a snapshot of their profitability, liquidity, valuation, and leverage as of fiscal year 2024.
| Ratios | GoDaddy Inc. (GDDY) | Informatica Inc. (INFA) |
|---|---|---|
| ROE | 1.35 | 0.0043 |
| ROIC | 0.16 | 0.0056 |
| P/E | 29.76 | 787.95 |
| P/B | 40.28 | 3.39 |
| Current Ratio | 0.72 | 1.82 |
| Quick Ratio | 0.72 | 1.82 |
| D/E (Debt-to-Equity) | 5.63 | 0.81 |
| Debt-to-Assets | 0.47 | 0.35 |
| Interest Coverage | 5.64 | 0.87 |
| Asset Turnover | 0.56 | 0.31 |
| Fixed Asset Turnover | 22.22 | 8.75 |
| Payout ratio | 0 | 0.0012 |
| Dividend yield | 0 | 0.00015% |
Interpretation of the Ratios
GoDaddy Inc.
GoDaddy displays strong profitability ratios with a net margin of 20.49% and an exceptionally high return on equity at 135.37%, reflecting efficient profit generation. However, valuation metrics like the P/E of 29.76 and P/B at 40.28 are unfavorable, indicating potentially overvalued stock. Liquidity ratios below 1 and high debt-to-equity of 5.63 raise caution. The company pays no dividends, consistent with its focus on growth and reinvestment.
Informatica Inc.
No ratio data is available for Informatica, preventing a direct financial ratio analysis. The absence of dividend payments might suggest a reinvestment strategy or focus on expansion, but detailed insights into profitability, liquidity, or leverage cannot be assessed due to missing information.
Which one has the best ratios?
Based on the available data, GoDaddy presents a mixed ratio profile with strong profitability and coverage ratios but weaker liquidity and valuation metrics, resulting in a neutral overall rating. Informatica’s ratios cannot be evaluated due to missing data, making GoDaddy the only company with an analyzable ratio set in this comparison.
Strategic Positioning
This section compares the strategic positioning of GoDaddy and Informatica, including Market position, Key segments, and Exposure to technological disruption:
GoDaddy Inc. (GDDY)
- Market leader in cloud-based domain registration and hosting, facing competition in small business tech services.
- Key segments include domain registration, hosting, business applications, and commerce-related products driving revenue growth.
- Exposure to disruption mainly in cloud hosting and online marketing tools, adapting by offering integrated security and payment solutions.
Informatica Inc. (INFA)
- Focused on enterprise data management with AI-powered platform, competing in multi-cloud and hybrid environments.
- Key segments are subscription and professional services in data integration, quality, governance, and API management.
- Positioned in advanced data management technologies with AI, facing evolving cloud and data governance disruptions.
GoDaddy vs Informatica Positioning
GoDaddy pursues a diversified strategy across domains, hosting, and commerce, targeting small businesses and individuals. Informatica concentrates on enterprise data management with AI-driven cloud solutions, focusing on large-scale data integration and governance.
Which has the best competitive advantage?
GoDaddy shows a very favorable moat with a ROIC exceeding WACC by 8.6% and a strong upward ROIC trend, indicating durable competitive advantage and efficient capital use. Informatica’s moat evaluation data is unavailable for comparison.
Stock Comparison
The stock price movements of GoDaddy Inc. and Informatica Inc. over the past 12 months reveal contrasting bearish trends with varying acceleration patterns and notable price extremes.
Trend Analysis
GoDaddy Inc. (GDDY) experienced a bearish trend with a -9.09% price change over the past year, marked by deceleration and high volatility (27.35 std deviation), with prices ranging between 104.46 and 212.65.
Informatica Inc. (INFA) showed a bearish trend with a -12.68% price change over the year, but with accelerating decline and lower volatility (4.46 std deviation), ranging from 16.67 to 38.48 in price.
Comparing both, GoDaddy’s stock delivered a smaller loss (-9.09%) than Informatica (-12.68%) over the 12-month period, indicating relatively better market performance despite both being bearish.
Target Prices
The current analyst consensus provides a clear outlook on target prices for GoDaddy Inc. and Informatica Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GoDaddy Inc. | 182 | 70 | 143.33 |
| Informatica Inc. | 27 | 27 | 27 |
Analysts expect GoDaddy’s stock to potentially rise well above the current price of $104.46, reflecting bullish sentiment. Informatica’s target price of $27 aligns closely with its current price of $24.79, suggesting limited near-term upside.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GoDaddy Inc. and Informatica Inc.:
Rating Comparison
GoDaddy Inc. Rating
- Rating: B+, categorized as Very Favorable by analysts.
- Discounted Cash Flow Score: 5, indicating a very favorable valuation based on future cash flows.
- ROE Score: 5, showing very efficient profit generation from shareholders’ equity.
- ROA Score: 4, reflecting favorable asset utilization to generate earnings.
- Debt To Equity Score: 1, considered very unfavorable due to high financial risk.
- Overall Score: 3, assessed as moderate overall financial standing.
Informatica Inc. Rating
- No rating data available.
- No data available.
- No data available.
- No data available.
- No data available.
- No data available.
Which one is the best rated?
Based strictly on the available data, GoDaddy holds a B+ rating with detailed financial scores, including very favorable scores in DCF and ROE, while no rating information is provided for Informatica. Therefore, GoDaddy is the better rated company in this comparison.
Scores Comparison
The scores comparison between GoDaddy Inc. and Informatica Inc. highlights their financial health and risk metrics:
GoDaddy Inc. Scores
- Altman Z-Score: 1.53, indicating financial distress
- Piotroski Score: 8, reflecting very strong financial health
Informatica Inc. Scores
- Altman Z-Score: 1.94, in the moderate risk grey zone
- Piotroski Score: 6, showing average financial strength
Which company has the best scores?
Based on the provided data, GoDaddy has a lower Altman Z-Score indicating higher risk but a stronger Piotroski Score. Informatica shows moderate bankruptcy risk but average financial strength. Each score reflects different aspects of their financial health.
Grades Comparison
The grades comparison for GoDaddy Inc. and Informatica Inc. from reputable grading companies is as follows:
GoDaddy Inc. Grades
This table summarizes recent grades and actions from notable 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 consistent pattern of holds, neutrals, and buys, reflecting a generally positive but cautious outlook.
Informatica Inc. Grades
This table summarizes recent grades and actions from notable financial institutions for Informatica Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | downgrade | Neutral | 2025-08-07 |
| UBS | maintain | Neutral | 2025-08-07 |
| Baird | maintain | Neutral | 2025-05-28 |
| JP Morgan | downgrade | Neutral | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | maintain | Equal Weight | 2025-05-28 |
| Truist Securities | downgrade | Hold | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-27 |
| UBS | maintain | Neutral | 2025-05-16 |
Informatica shows mostly neutral and hold grades with several downgrades, indicating a more cautious or less optimistic market sentiment.
Which company has the best grades?
GoDaddy Inc. has received generally stronger grades with multiple buy ratings and an overall consensus of “Buy,” while Informatica Inc. holds a consensus of “Hold” with mostly neutral or downgraded ratings. This suggests GoDaddy is viewed more favorably by analysts, potentially impacting investor sentiment towards greater confidence in its stock performance.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for GoDaddy Inc. (GDDY) and Informatica Inc. (INFA) based on the most recent available data.
| Criterion | GoDaddy Inc. (GDDY) | Informatica Inc. (INFA) |
|---|---|---|
| Diversification | Strong, with Core Platform and Applications & Commerce segments generating over $4.5B in 2024 revenue combined | Moderate, mainly Subscription and Professional Services segments, around $1.18B in 2024 |
| Profitability | High profitability: Net margin 20.49%, ROIC 16.02% (well above WACC) | Data unavailable to evaluate profitability |
| Innovation | Demonstrates durable competitive advantage with growing ROIC (+147%) | Data unavailable to evaluate innovation |
| Global presence | Large global footprint through domain registration and hosting services | Global presence but less diversified product portfolio |
| Market Share | Leading market share in web services and domain registration markets | Significant in data integration software, but smaller scale than GDDY |
Key takeaway: GoDaddy shows a robust financial and competitive profile with strong profitability, growing returns, and diversified revenue streams. Informatica lacks recent financial data, making it difficult to fully assess but remains a notable player in subscription-based software services. Investors should weigh GoDaddy’s proven value creation against the uncertainty surrounding Informatica’s current metrics.
Risk Analysis
Below is a comparative table highlighting key risks for GoDaddy Inc. (GDDY) and Informatica Inc. (INFA) based on the most recent data from 2024–2026.
| Metric | GoDaddy Inc. (GDDY) | Informatica Inc. (INFA) |
|---|---|---|
| Market Risk | Moderate (Beta 0.95, tech sector exposure) | Moderate (Beta 1.14, tech sector exposure) |
| Debt level | High (Debt/Equity 5.63, interest coverage 5.84) | Unknown (data unavailable) |
| Regulatory Risk | Moderate (US-focused, data privacy compliance) | Moderate (US-based with AI/data regulation risks) |
| Operational Risk | Moderate (cloud infrastructure and cybersecurity) | Moderate (complex AI platform integration) |
| Environmental Risk | Low (software industry, minimal direct impact) | Low (software sector, minimal direct impact) |
| Geopolitical Risk | Moderate (US and international markets exposure) | Moderate (US headquartered, global clients) |
GoDaddy’s main risk is its elevated debt level, despite strong profitability and liquidity concerns, which may pressure financial stability. Informatica faces typical sector risks with limited disclosed financial data, but its exposure to AI regulation and hybrid cloud complexity could impact growth. I advise cautious monitoring of GoDaddy’s leverage and regulatory developments for both.
Which Stock to Choose?
GoDaddy Inc. (GDDY) shows a generally positive income evolution with favorable profitability metrics such as a 20.49% net margin and strong returns on equity (135.37%) and invested capital (16.02%). However, it carries a relatively high debt-to-equity ratio and a current ratio below 1, resulting in a neutral overall financial ratios evaluation and a very favorable company rating (B+). Its economic moat is very favorable, indicating durable competitive advantage and value creation.
Informatica Inc. (INFA) exhibits favorable gross and EBIT margins but a low net margin of 0.61%, with weaker returns on equity and assets close to zero. Its income statement shows favorable growth in net margin and EPS over the long term, but ratio data is unavailable. Scores reflect moderate financial distress risk (Altman Z-Score in the grey zone) and average financial strength (Piotroski Score 6). The stock has experienced a recent mild trend stabilization after a bearish period.
Investors focused on quality and value creation might find GoDaddy’s strong profitability and durable moat appealing, while those seeking companies with improving income growth and moderate risk profiles could view Informatica’s recent earnings improvements and stabilizing stock trend as noteworthy. The choice may depend on the investor’s tolerance for financial leverage and preference for established competitive advantages versus potential growth trajectories.
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 Informatica Inc. to enhance your investment decisions:
