In the rapidly evolving software infrastructure sector, GoDaddy Inc. and Teradata Corporation stand out as key players with distinct yet overlapping market focuses. GoDaddy specializes in cloud-based digital identity and hosting services, targeting small businesses and individuals, while Teradata delivers advanced multi-cloud data analytics platforms for large enterprises. This article will explore their strategies and prospects to determine which company offers the most compelling investment opportunity for you.
Table of contents
Companies Overview
I will begin the comparison between GoDaddy and Teradata 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 serving small businesses, individuals, and developers. It offers domain registration, website hosting, security tools, marketing services, and business applications. Headquartered in Tempe, Arizona, GoDaddy aims to help customers establish and grow their digital presence with a comprehensive suite of infrastructure solutions.
Teradata Overview
Teradata Corporation provides a connected multi-cloud data platform for enterprise analytics, enabling companies to leverage data across their organizations. Its flagship product, Teradata Vantage, facilitates data integration and cloud migration, supported by consulting and maintenance services. Based in San Diego, California, Teradata serves diverse sectors including financial services, healthcare, and telecommunications through a global direct sales force.
Key similarities and differences
Both GoDaddy and Teradata operate in the software infrastructure industry with a focus on cloud-based solutions. However, GoDaddy targets small businesses and individuals with domain and hosting services, while Teradata specializes in enterprise-level multi-cloud data analytics platforms. Each company supports digital transformation but addresses different customer segments and offers distinct product portfolios tailored to their markets.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for GoDaddy Inc. and Teradata Corporation for the fiscal year 2024.
| Metric | GoDaddy Inc. (GDDY) | Teradata Corporation (TDC) |
|---|---|---|
| Market Cap | 14.5B | 2.8B |
| Revenue | 4.57B | 1.75B |
| EBITDA | 1.06B | 293M |
| EBIT | 924M | 193M |
| Net Income | 937M | 114M |
| EPS | 6.63 | 1.18 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
GoDaddy Inc.
GoDaddy’s revenue steadily increased from $3.3B in 2020 to $4.57B in 2024, reflecting a 37.9% growth over five years. Net income rose sharply from a loss of $495M in 2020 to $937M in 2024, with net margin improving to 20.49%. Despite a 7.5% revenue growth in 2024, net income and EPS declined, signaling margin pressure despite favorable overall profitability metrics.
Teradata Corporation
Teradata’s revenue declined from $1.84B in 2020 to $1.75B in 2024, a 4.7% drop over five years. Net income showed volatility, peaking at $147M in 2021 then falling to $114M in 2024, with net margin at 6.51%. The latest year saw revenue and gross profit decrease, but EBIT and net margin improved significantly, indicating some operational efficiency gains despite weaker top-line growth.
Which one has the stronger fundamentals?
GoDaddy demonstrates stronger fundamentals with substantial revenue and net income growth over five years and higher margins, supported by a gross margin near 64% and EBIT margin above 20%. Teradata’s fundamentals are weaker due to declining revenue and net income over the period, though it shows recent margin improvements. Overall, GoDaddy’s financials reflect more consistent profitability and growth.
Financial Ratios Comparison
The table below provides a side-by-side comparison of key financial ratios for GoDaddy Inc. and Teradata Corporation based on their latest fiscal year data for 2024.
| Ratios | GoDaddy Inc. (GDDY) | Teradata Corporation (TDC) |
|---|---|---|
| ROE | 135.37% | 85.71% |
| ROIC | 16.02% | 16.89% |
| P/E | 29.76 | 26.34 |
| P/B | 40.28 | 22.58 |
| Current Ratio | 0.72 | 0.81 |
| Quick Ratio | 0.72 | 0.79 |
| D/E (Debt-to-Equity) | 5.63 | 4.33 |
| Debt-to-Assets | 47.29% | 33.80% |
| Interest Coverage | 5.64 | 7.21 |
| Asset Turnover | 0.56 | 1.03 |
| Fixed Asset Turnover | 22.22 | 9.07 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
GoDaddy Inc.
GoDaddy shows strong profitability with a net margin of 20.49% and an exceptionally high ROE of 135.37%, reflecting efficient equity use. However, liquidity ratios are weak with a current ratio of 0.72, and leverage is high given a debt-to-equity of 5.63. The absence of dividends aligns with a reinvestment strategy or growth phase, as no payouts or buybacks are reported.
Teradata Corporation
Teradata presents moderate profitability, with a net margin of 6.51% and a favorable ROE of 85.71%, indicating good return on equity but lower than GoDaddy’s. Liquidity remains suboptimal with a current ratio of 0.81, and debt levels are manageable though debt-to-equity is elevated at 4.33. The company does not pay dividends, likely prioritizing reinvestment and R&D expenditures.
Which one has the best ratios?
Both companies have an equal proportion of favorable and unfavorable ratios, resulting in a neutral overall evaluation. GoDaddy excels in profitability metrics but struggles with liquidity and leverage, while Teradata shows balanced asset turnover and interest coverage. Neither pays dividends, reflecting growth or reinvestment priorities rather than shareholder income distribution.
Strategic Positioning
This section compares the strategic positioning of GoDaddy Inc. and Teradata Corporation in terms of market position, key segments, and exposure to technological disruption:
GoDaddy Inc.
- Large market cap of 14.5B with competitive pressure in cloud-based technology and domain services.
- Key segments include domain registration, hosting, security, marketing tools, and business apps.
- Faces disruption from evolving cloud infrastructure and web services but leverages integrated tools.
Teradata Corporation
- Smaller market cap of 2.8B, focused on enterprise multi-cloud data platforms with global direct sales presence.
- Key segments are consulting, recurring product and service revenues, and multi-cloud analytics software licenses.
- Exposed to cloud migration and analytics innovations, supporting ecosystem simplification and multi-cloud adoption.
GoDaddy Inc. vs Teradata Corporation Positioning
GoDaddy pursues a diversified strategy targeting small businesses with broad digital identity and hosting products, while Teradata concentrates on enterprise analytics and consulting services. GoDaddy benefits from scale in SMB markets; Teradata’s focus enables specialized cloud analytics expertise.
Which has the best competitive advantage?
Both companies demonstrate growing ROIC above WACC, indicating durable competitive advantages. Teradata’s higher ROIC growth suggests a stronger moat, but GoDaddy’s scale in diversified cloud services also supports sustained value creation.
Stock Comparison
The past year revealed contrasting price dynamics for GoDaddy Inc. and Teradata Corporation, with both stocks experiencing notable declines overall but differing recent momentum and trading patterns.
Trend Analysis
GoDaddy Inc. showed a bearish trend over the past 12 months with a -9.09% price change, decelerating in decline and exhibiting high volatility (std dev 27.35), reaching a high of 212.65 and a low of 104.46. Teradata Corporation also followed a bearish trend over the last year, falling -21.26% with accelerating decline and lower volatility (std dev 5.63), hitting highs of 38.67 and lows of 19.73. Comparing recent trends, Teradata outperformed GoDaddy, gaining 42.78% versus GoDaddy’s -21.54%, making Teradata the stronger market performer during the latest period.
Target Prices
The current analyst consensus presents a positive outlook for both GoDaddy Inc. and Teradata Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GoDaddy Inc. | 182 | 70 | 143.33 |
| Teradata Corporation | 35 | 27 | 31 |
Analysts expect GoDaddy’s stock to appreciate significantly from its current price of $104.46, while Teradata’s target consensus of $31 is slightly above its current price of $29.77, indicating moderate upside potential.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GoDaddy Inc. and Teradata Corporation:
Rating Comparison
GoDaddy Inc. Rating
- Rating: B+, considered very favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable DCF.
- ROE Score: 5, reflecting very efficient profit generation.
- ROA Score: 4, considered favorable asset utilization.
- Debt To Equity Score: 1, marked as very unfavorable risk.
Teradata Corporation Rating
- Rating: B+, also considered very favorable by analysts.
- Discounted Cash Flow Score: 4, showing a favorable valuation.
- ROE Score: 5, equally very efficient at generating profit.
- ROA Score: 4, favorable utilization of company assets.
- Debt To Equity Score: 1, also very unfavorable financial risk.
Which one is the best rated?
Both GoDaddy Inc. and Teradata Corporation share an identical overall rating of B+ and equal scores for ROE, ROA, and debt-to-equity risk. GoDaddy has a slightly higher discounted cash flow score, but overall, their ratings are closely matched based on the provided data.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for GoDaddy Inc. and Teradata Corporation:
GoDaddy Scores
- Altman Z-Score: 1.53, in distress zone indicating financial risk
- Piotroski Score: 8, very strong financial health
Teradata Scores
- Altman Z-Score: 0.81, also in distress zone with high risk
- Piotroski Score: 8, very strong financial health
Which company has the best scores?
Both GoDaddy and Teradata have identical very strong Piotroski Scores of 8, indicating solid financial health. However, GoDaddy’s Altman Z-Score is higher at 1.53 versus Teradata’s 0.81, suggesting slightly lower bankruptcy risk for GoDaddy.
Grades Comparison
Here is a detailed comparison of the latest available grades for GoDaddy Inc. and Teradata Corporation:
GoDaddy Inc. Grades
The following table presents recent grades assigned to GoDaddy Inc. by major grading firms:
| 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 balanced mix of buy and hold ratings, with several firms maintaining buy and overweight positions.
Teradata Corporation Grades
The following table summarizes recent grades for Teradata Corporation by recognized grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Underweight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Citizens | Upgrade | Market Outperform | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-11-05 |
| TD Cowen | Maintain | Hold | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Guggenheim | Maintain | Buy | 2025-05-07 |
| Barclays | Maintain | Underweight | 2025-04-21 |
Teradata’s grades reflect a broader range, from underweight to outperform, with some recent upgrades but also multiple underweight ratings.
Which company has the best grades?
GoDaddy Inc. holds a stronger consensus with a majority of buy and overweight ratings, suggesting moderate optimism among analysts. Teradata Corporation displays more mixed opinions, with both upgrades and several underweight recommendations, indicating a more cautious market stance. This variation may impact investors’ confidence and perceived risk for each stock.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for GoDaddy Inc. (GDDY) and Teradata Corporation (TDC), based on their most recent financial and operational data.
| Criterion | GoDaddy Inc. (GDDY) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Moderate: Revenue split between Core Platform (2.92B) and Applications & Commerce (1.65B). | High: Multiple segments including Consulting, Recurring Products/Services, and Subscription Software. |
| Profitability | Strong: Net margin 20.5%, ROIC 16.0%, ROE 135.4%. | Moderate: Net margin 6.5%, ROIC 16.9%, ROE 85.7%. |
| Innovation | Favorable ROIC trend (+147%), showing durable competitive advantage. | Very favorable ROIC trend (+370%), indicating strong innovation and profitability growth. |
| Global presence | Primarily US-focused with global digital reach via web services. | Significant international data and analytics presence alongside US market. |
| Market Share | Leading in domain registration and web hosting markets. | Strong presence in data analytics and enterprise software sectors. |
Key takeaways: Both companies show durable competitive advantages with growing profitability. GoDaddy excels in profitability and market leadership in web services, while Teradata demonstrates stronger diversification and innovation momentum in analytics and software. Investors should balance GoDaddy’s higher margins against Teradata’s broader product base and faster ROIC growth.
Risk Analysis
Below is a comparison of key risks for GoDaddy Inc. and Teradata Corporation based on the most recent financial and market data from 2024.
| Metric | GoDaddy Inc. (GDDY) | Teradata Corporation (TDC) |
|---|---|---|
| Market Risk | Beta 0.95, moderate market sensitivity | Beta 0.57, lower volatility, less market sensitivity |
| Debt Level | High debt-to-equity (5.63), moderate debt-to-assets (47%) | High debt-to-equity (4.33), moderate debt-to-assets (34%) |
| Regulatory Risk | Moderate, tech sector regulations and data privacy laws | Moderate, data security and cloud regulations impact |
| Operational Risk | Medium, reliance on web hosting and cloud infrastructure | Medium, complexity in multi-cloud data platform delivery |
| Environmental Risk | Low, limited direct environmental impact | Low, primarily software services |
| Geopolitical Risk | Moderate, global operations expose to trade tensions | Moderate, international sales subject to geopolitical shifts |
GoDaddy faces significant financial risk due to its high leverage and liquidity concerns, reflected in a low current ratio and Altman Z-score in the distress zone. Teradata shares similar leverage risks but benefits from lower market volatility. Both companies must manage operational and regulatory risks inherent in the evolving technology landscape.
Which Stock to Choose?
GoDaddy Inc. (GDDY) shows a favorable income evolution with 37.88% revenue growth over 2020-2024 and strong profitability indicated by a 20.49% net margin and 135.37% ROE. However, it carries a high debt-to-equity ratio and low liquidity ratios, resulting in a neutral global financial ratios evaluation. Its rating is very favorable with a B+ score, though some valuation metrics appear unfavorable.
Teradata Corporation (TDC) presents mixed income growth, with a -4.68% revenue decline over the period but favorable EBIT margin and improving net margin growth of 92.59% in the last year. The company’s financial ratios are balanced with favorable ROE and ROIC, moderate leverage, and a neutral global ratios opinion. TDC also holds a very favorable B+ rating with moderate valuation scores.
Considering ratings and overall financials, growth-oriented investors might find GoDaddy’s strong income growth and profitability attractive despite leverage concerns, while those seeking stable returns with improving fundamentals could view Teradata’s durable competitive advantage and moderate risk profile more favorably. Both companies demonstrate durable competitive moats, though differing income and financial dynamics suggest suitability varies by investor preference.
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 Teradata Corporation to enhance your investment decisions:
