Reviewing Aerohive Networks (HIVE) and GoDaddy (GDDY)

Aerohive Networks (NYSE: HIVE) and GoDaddy (NYSE:GDDY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings and Valuation

This table compares Aerohive Networks and GoDaddy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $152.90 million 1.49 -$22.92 million ($0.41) -10.17
GoDaddy $2.23 billion 5.32 $136.40 million $0.42 168.21

GoDaddy has higher revenue and earnings than Aerohive Networks. Aerohive Networks is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Aerohive Networks and GoDaddy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 2 0 2.67
GoDaddy 1 6 12 0 2.58

Aerohive Networks presently has a consensus target price of $6.50, suggesting a potential upside of 55.88%. GoDaddy has a consensus target price of $66.93, suggesting a potential downside of 5.26%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aerohive Networks is more favorable than GoDaddy.

Volatility & Risk

Aerohive Networks has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, GoDaddy has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

46.2% of Aerohive Networks shares are held by institutional investors. Comparatively, 87.4% of GoDaddy shares are held by institutional investors. 26.1% of Aerohive Networks shares are held by insiders. Comparatively, 7.6% of GoDaddy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Aerohive Networks and GoDaddy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -13.93% -95.00% -15.69%
GoDaddy 6.18% 11.05% 0.99%

Summary

GoDaddy beats Aerohive Networks on 9 of the 13 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

About GoDaddy

GoDaddy Inc. designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally. It provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; hosting products, such as shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security. The company also offers presence products, including GoCentral, an online tool that enables customers to build Websites and online stores; and a range of marketing tools designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites. In addition, the company offers business application products, including Microsoft Office 365, email accounts, email marketing, and telephony services. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.

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