Qihoo 360 Technology (QIHU) and Godaddy (GDDY) Critical Analysis

Qihoo 360 Technology (NYSE: QIHU) and Godaddy (NYSE:GDDY) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Qihoo 360 Technology has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Godaddy has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Earnings & Valuation

This table compares Qihoo 360 Technology and Godaddy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qihoo 360 Technology N/A N/A N/A $2.14 35.94
Godaddy $1.85 billion 5.02 -$16.50 million $0.26 214.55

Qihoo 360 Technology has higher earnings, but lower revenue than Godaddy. Qihoo 360 Technology is trading at a lower price-to-earnings ratio than Godaddy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.7% of Godaddy shares are held by institutional investors. 22.7% of Godaddy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Qihoo 360 Technology and Godaddy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qihoo 360 Technology 17.95% 30.01% 9.81%
Godaddy 2.34% 7.89% 0.97%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Qihoo 360 Technology and Godaddy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qihoo 360 Technology 0 0 0 0 N/A
Godaddy 0 4 11 0 2.73

Godaddy has a consensus target price of $52.86, indicating a potential downside of 5.24%. Given Godaddy’s higher possible upside, analysts clearly believe Godaddy is more favorable than Qihoo 360 Technology.

Summary

Godaddy beats Qihoo 360 Technology on 6 of the 11 factors compared between the two stocks.

About Qihoo 360 Technology

Qihoo 360 Technology Co. Ltd. is a China-based company principally engaged in the operations of Internet services. The Company’s segments include Internet services, smart hardware and IOT devices. The Company’s Internet and mobile security products include 360 Safe Guard, 360 Anti-virus and 360 Mobile Safe. The Company is also involved in the development of various platform products to meet a range of security-related needs of Internet users and create access points to the Internet, which include 360 browsers; 360 Personal Start-up Page and its subpages; 360 Search, and 360 Mobile Assistant. The Company also provides online advertising service solutions, such as sponsored links (advertising links), on its platform products, such as 360 Personal Start-up Page, 360 Search and 360 Mobile Assistant; Internet value-added services; Internet of things (IOT) devices, and other services. It also serves as an agent for providing online distribution services and payment collections services.

About Godaddy

GoDaddy Inc. is a technology provider to small businesses, Web design professionals and individuals. The Company delivers cloud-based products and personalized customer care. It operates a domain marketplace, where its customers can find the digital real estate that matches their idea. It provides Website building, hosting and security tools to help customers construct and protect online presence. It provides applications that enable connecting to customers and managing businesses. The Company provides search, discovery and recommendation tools, as well as a selection of domain name for ventures. It provides productivity tools, such as domain-specific e-mail, online storage, invoicing, bookkeeping and payment solutions to run ventures, as well as marketing products. The Company’s products, including GoCentral enable to build a Website or online store for both desktop and mobile. Its products are powered by a cloud platform and enable its customers to get found online.

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