In the rapidly evolving technology sector, GoDaddy Inc. and Veritone, Inc. emerge as compelling contenders, each pioneering distinct yet overlapping software infrastructure solutions. GoDaddy excels in cloud-based digital identity and web presence services, while Veritone advances artificial intelligence through its aiWARE platform. This comparison delves into their innovation strategies, market positions, and growth potential to help you, the investor, identify which company holds the most promise for your portfolio.
Table of contents
Companies Overview
I will begin the comparison between GoDaddy and Veritone 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. Its offerings include domain name registration, shared and managed website hosting, security products, marketing tools, and business applications like Microsoft Office 365 and email services. Headquartered in Tempe, Arizona, GoDaddy holds a strong position in the digital identity and online presence market.
Veritone Overview
Veritone, Inc. provides artificial intelligence computing solutions through its aiWARE platform, which uses machine learning and cognitive processes to analyze structured and unstructured data. The company serves diverse sectors such as media, government, legal, and energy, offering AI-driven insights and media advertising agency services. Based in Denver, Colorado, Veritone operates in the AI software infrastructure industry with a focus on analytics and automation.
Key similarities and differences
Both GoDaddy and Veritone operate in the technology sector focusing on software infrastructure, yet their core business models differ. GoDaddy emphasizes cloud-based products and services enabling digital presence and e-commerce, targeting small businesses and individuals. In contrast, Veritone specializes in AI-driven data analytics and media advertising solutions, serving a broader range of vertical markets with advanced machine learning technologies. Their market caps and employee counts also differ significantly, reflecting their scale and operational focus.
Income Statement Comparison
The table below compares the key income statement metrics for GoDaddy Inc. and Veritone, Inc. based on their most recent fiscal year data.
| Metric | GoDaddy Inc. (GDDY) | Veritone, Inc. (VERI) |
|---|---|---|
| Market Cap | 14.5B | 225M |
| Revenue | 4.57B | 93M |
| EBITDA | 1.06B | -59M |
| EBIT | 924M | -88M |
| Net Income | 937M | -37M |
| EPS | 6.63 | -0.98 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
GoDaddy Inc.
GoDaddy’s revenue showed a steady increase from $3.3B in 2020 to $4.57B in 2024, with net income rising substantially from a loss of $495M in 2020 to $937M in 2024. Gross and EBIT margins remained favorable, with 63.9% and 20.2% respectively in 2024. The latest year saw revenue growth slow to 7.5%, but EBIT surged 58.5%, although net margin declined by 36.6%.
Veritone, Inc.
Veritone’s revenue grew from $58M in 2020 to $93M in 2024 but declined 7.4% in the last year. Net income improved overall from a loss of $48M to a smaller loss of $37M in 2024. Gross margin remained strong at 70.6%, but EBIT and net margins were deeply negative, with EBIT margin at -95.1%. Despite short-term declines, net margin and EPS showed favorable growth over the period.
Which one has the stronger fundamentals?
GoDaddy exhibits stronger fundamentals with consistent revenue and net income growth, robust margins, and positive EPS trends over five years. Veritone, while growing revenue and improving losses, struggles with persistent negative EBIT and net margins, indicating weaker operational profitability. The overall income statement evaluation favors GoDaddy for its higher profitability and margin stability.
Financial Ratios Comparison
Below is a comparison of key financial ratios for GoDaddy Inc. and Veritone, Inc. based on their most recent fiscal year data as of 2024.
| Ratios | GoDaddy Inc. (GDDY) | Veritone, Inc. (VERI) |
|---|---|---|
| ROE | 135.37% | -277.91% |
| ROIC | 16.02% | -58.27% |
| P/E | 29.76 | -3.34 |
| P/B | 40.28 | 9.27 |
| Current Ratio | 0.72 | 0.97 |
| Quick Ratio | 0.72 | 0.97 |
| D/E (Debt to Equity) | 5.63 | 8.91 |
| Debt-to-Assets | 47.29% | 60.54% |
| Interest Coverage | 5.64 | -7.31 |
| Asset Turnover | 0.56 | 0.47 |
| Fixed Asset Turnover | 22.22 | 8.51 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
GoDaddy Inc.
GoDaddy exhibits several strong profitability ratios, including a favorable net margin of 20.49% and an exceptionally high return on equity at 135.37%, signaling efficient capital use. However, liquidity ratios such as current and quick ratios are below 1, indicating potential short-term liquidity concerns. The company does not pay dividends, reflecting a potential reinvestment strategy or focus on growth rather than shareholder payouts.
Veritone, Inc.
Veritone’s financial ratios show significant weaknesses, with a negative net margin of -40.36% and return on equity at -277.91%, highlighting ongoing profitability struggles. Liquidity ratios hover near 1, but debt-related metrics and interest coverage are unfavorable, suggesting financial stress. The company also does not pay dividends, likely due to negative earnings and prioritization of research and development or growth initiatives.
Which one has the best ratios?
Comparing the two, GoDaddy’s ratios are generally stronger, with favorable profitability and capital efficiency measures despite liquidity challenges. Conversely, Veritone’s ratios indicate considerable financial difficulties and unprofitability, resulting in a very unfavorable overall evaluation. Therefore, GoDaddy demonstrates a more solid financial profile based on the 2024 fiscal year ratios.
Strategic Positioning
This section compares the strategic positioning of GoDaddy Inc. and Veritone, Inc., including market position, key segments, and exposure to technological disruption:
GoDaddy Inc.
- Large market cap of 14.5B USD; faces competitive pressure in software infrastructure
- Key segments include domain registration, hosting, marketing tools, and business applications
- Moderate exposure to disruption, focusing on cloud-based tech and digital presence products
Veritone, Inc.
- Small market cap of 225M USD; operates in competitive AI software infrastructure
- Key segments include AI platform, managed services, advertising, and software products
- High exposure due to reliance on AI and machine learning technologies across industries
GoDaddy Inc. vs Veritone, Inc. Positioning
GoDaddy shows a diversified approach with strong focus on core platform services and commerce, serving small businesses broadly. Veritone is more concentrated on AI-driven solutions and managed services in niche markets, posing higher risk and specialization differences.
Which has the best competitive advantage?
GoDaddy demonstrates a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. Veritone shows a very unfavorable moat with declining ROIC, suggesting a weaker competitive position and value destruction.
Stock Comparison
The stock price movements of GoDaddy Inc. (GDDY) and Veritone, Inc. (VERI) over the past year reveal contrasting trends, with notable volatility and recent shifts in buyer-seller dynamics affecting trading patterns.
Trend Analysis
Over the past 12 months, GoDaddy Inc. experienced a bearish trend with a 9.09% price decline and deceleration in trend momentum. The stock showed significant volatility, ranging from a high of 212.65 to a low of 104.46.
Veritone, Inc. recorded a strong bullish trend over the same period, with a 147.22% price increase and decelerating acceleration. The stock’s price fluctuated between 1.3 and 7.18, exhibiting low volatility.
Comparing both stocks, Veritone delivered the highest market performance with a substantial price gain, contrasting with GoDaddy’s moderate bearish movement.
Target Prices
Analysts present a mixed but generally optimistic target consensus for GoDaddy Inc. and Veritone, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GoDaddy Inc. | 182 | 70 | 143.33 |
| Veritone, Inc. | 10 | 9 | 9.5 |
For GoDaddy Inc., the consensus target price of 143.33 suggests a significant upside potential compared to the current price of 104.46 USD. Veritone’s targets indicate a moderate upside from its current 4.45 USD price, reflecting higher risk but possible growth.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for GoDaddy Inc. and Veritone, Inc.:
Rating Comparison
GoDaddy Inc. Rating
- Rating: B+, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable valuation based on future cash flows.
- ROE Score: 5, showing very favorable profitability from shareholders’ equity.
- ROA Score: 4, reflecting favorable asset utilization to generate earnings.
- Debt To Equity Score: 1, indicating very unfavorable financial risk due to high debt relative to equity.
- Overall Score: 3, reflecting a moderate overall financial standing.
Veritone, Inc. Rating
- Rating: C, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable valuation based on future cash flows.
- ROE Score: 1, showing very unfavorable profitability from shareholders’ equity.
- ROA Score: 1, reflecting very unfavorable asset utilization to generate earnings.
- Debt To Equity Score: 1, indicating very unfavorable financial risk due to high debt relative to equity.
- Overall Score: 2, reflecting a moderate overall financial standing.
Which one is the best rated?
Based on the data, GoDaddy holds a higher rating (B+) and better scores in ROE and ROA, suggesting stronger profitability and asset use. Both have very unfavorable debt scores, but GoDaddy’s overall score is moderately better than Veritone’s.
Scores Comparison
The following table compares the Altman Z-Score and Piotroski Score for GoDaddy Inc. and Veritone, Inc.:
GoDaddy Inc. Scores
- Altman Z-Score: 1.53, in the distress zone, indicating risk.
- Piotroski Score: 8, categorized as very strong financial health.
Veritone, Inc. Scores
- Altman Z-Score: -0.07, in the distress zone, indicating risk.
- Piotroski Score: 3, categorized as very weak financial health.
Which company has the best scores?
GoDaddy shows a better Piotroski Score of 8 compared to Veritone’s 3, suggesting stronger financial health. Both companies share distress zone Altman Z-Scores, indicating financial risk for each.
Grades Comparison
The grades and ratings issued by verified financial institutions for both companies are as follows:
GoDaddy Inc. Grades
The table below summarizes recent grades from established 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 balanced mix of Buy and Hold/Neutral ratings, indicating moderate confidence and some caution among analysts.
Veritone, Inc. Grades
The table below presents recent grades from verified financial institutions for Veritone, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| D. Boral Capital | Maintain | Buy | 2025-12-09 |
| D. Boral Capital | Maintain | Buy | 2025-12-04 |
| Needham | Maintain | Buy | 2025-12-02 |
| D. Boral Capital | Maintain | Buy | 2025-12-02 |
| D. Boral Capital | Maintain | Buy | 2025-11-07 |
| D. Boral Capital | Maintain | Buy | 2025-10-28 |
| HC Wainwright & Co. | Maintain | Buy | 2025-10-20 |
| D. Boral Capital | Maintain | Buy | 2025-10-15 |
| D. Boral Capital | Maintain | Buy | 2025-09-24 |
| D. Boral Capital | Maintain | Buy | 2025-09-09 |
Veritone’s grades are uniformly Buy from all grading institutions, reflecting strong positive sentiment.
Which company has the best grades?
Veritone, Inc. has received consistently positive Buy ratings compared to GoDaddy Inc.’s mixed Buy and Hold/Neutral grades. This suggests Veritone may be viewed as having stronger growth or value potential, which investors might interpret as a signal of higher confidence from analysts.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of GoDaddy Inc. (GDDY) and Veritone, Inc. (VERI) based on their recent financial performance, market positioning, and innovation capabilities.
| Criterion | GoDaddy Inc. (GDDY) | Veritone, Inc. (VERI) |
|---|---|---|
| Diversification | Strong with Core Platform and Commerce segments generating $2.92B and $1.65B in 2024 | Moderate, with License, Managed Services, and Software Products contributing under $100M in total |
| Profitability | High profitability: 20.5% net margin, 135.4% ROE, 16% ROIC, creating value with growing ROIC | Negative profitability: -40.4% net margin, -278% ROE, -58.3% ROIC, shedding value with declining ROIC |
| Innovation | Consistent innovation in online services and e-commerce platforms | Focused on AI and software, but struggling to translate innovation into profits |
| Global presence | Well-established global domain and hosting provider | Limited global footprint, mostly specialized AI solutions |
| Market Share | Large market share in domains and hosting | Small niche market share in AI software and services |
In summary, GoDaddy demonstrates a robust competitive position with strong profitability and a diversified revenue base, while Veritone faces significant challenges with negative profitability and value destruction despite its innovation focus. Caution is advised when considering investment in Veritone due to its financial instability.
Risk Analysis
Below is a comparison of key risk factors for GoDaddy Inc. and Veritone, Inc. in 2024.
| Metric | GoDaddy Inc. (GDDY) | Veritone, Inc. (VERI) |
|---|---|---|
| Market Risk | Moderate (Beta 0.95) | High (Beta 2.05) |
| Debt Level | High (D/E 5.63, Debt/Assets 47%) | Very High (D/E 8.91, Debt/Assets 61%) |
| Regulatory Risk | Moderate (Technology sector) | Moderate (AI software sector) |
| Operational Risk | Moderate (Cloud infrastructure) | High (AI platform dependency) |
| Environmental Risk | Low (Software-focused) | Low (Software-focused) |
| Geopolitical Risk | Moderate (US-based global operations) | Moderate (US/UK operations) |
GoDaddy faces moderate market and operational risks but maintains a strong profitability profile despite high leverage, signaling caution in debt management. Veritone shows elevated market and financial risks, with significant debt and negative profitability, increasing its vulnerability to operational and market downturns. Investors should monitor Veritone’s financial health closely due to distress signals and high beta volatility.
Which Stock to Choose?
GoDaddy Inc. (GDDY) shows a favorable income evolution with strong gross and EBIT margins and a 289% net income growth over 2020-2024. Its financial ratios indicate high profitability (ROE 135%) but mixed liquidity and leverage metrics. The company carries moderate debt and holds a very favorable overall rating of B+.
Veritone, Inc. (VERI) exhibits a mixed income profile with a high gross margin but negative EBIT and net margins, despite positive revenue growth over the period. Its financial ratios are predominantly unfavorable, reflecting losses, weak returns, and high leverage. The overall rating is very unfavorable at C, indicating financial challenges.
For investors, GDDY’s very favorable rating and value-creating moat with growing ROIC suggest potential appeal for those prioritizing quality and profitability. VERI’s profile, marked by substantial financial weakness despite growth, might be more suitable for risk-tolerant investors seeking turnaround opportunities but carries higher risk.
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 Veritone, Inc. to enhance your investment decisions:
