GoDaddy vs Shopify
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KIRA’s take AI analyst
I put GoDaddy and Shopify side by side, using each one’s latest annual report. Here is what stands out:
- Shopify is the larger business, with $11.6B of revenue in fiscal 2025 against $5.0B for GoDaddy, about 2.3 times as much.
- Shopify grew revenue faster (30.1%, against 8.3%).
- GoDaddy kept more of each dollar of sales as operating profit (22.8% operating margin, against 12.7%).
- GoDaddy turned more of its sales into free cash flow (31.8% FCF margin, against 17.4%).
- GoDaddy earned a higher return on the capital invested in it (30.6%, against 16.3%).
- Investors pay more for each dollar of Shopify’s earnings: a P/E of 113.6x against 16.3x for GoDaddy.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
GoDaddy
GDDY
6/10
Operating marginNet marginFCF marginReturn on capitalReturn on equityShare count change
Shopify
SHOP
4/10
Revenue growth5-year growthPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | GDDY FY25 | SHOP FY25 |
|---|---|---|
| Size | ||
| Market cap | $14.4B | $218.3B |
| Revenue | $5.0B | $11.6B |
| Free cash flow | $1.6B | $2.0B |
| Net income | $875M | $1.2B |
| Growth | ||
| Revenue growth | 8.3% | 30.1% |
| 5-year growth | 8.3% | 31.6% |
| Share count change | −3.2% | 0.3% |
| Profitability | ||
| Gross margin | — | 48.1% |
| Operating margin | 22.8% | 12.7% |
| Net margin | 17.7% | 10.7% |
| FCF margin | 31.8% | 17.4% |
| Return on capital | 30.6% | 16.3% |
| Return on equity | 192.9% | 9.8% |
| Balance sheet | ||
| Net debt | $2.7B | −$5.8B |
| Net debt / EBITDA | 2.2x | −3.9x |
| Dividends and buybacks | $1.6B | $0.0M |
| Valuation & quality | ||
| P/E | 16.3x | 113.6x |
| Piotroski F-score | 5 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.