Which Is a Better Investment, Godaddy Inc or International Business Machines Corp. Stock?

By AAII Staff
September 03, 2026
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Sifting through countless of stocks in the IT Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in International Business Machines Corporation or GoDaddy Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how International Business Machines Corporation and GoDaddy Inc. compare based on key financial metrics to determine which better meets your investment needs.

About International Business Machines Corporation and GoDaddy Inc.

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, and facilitates IBM clients’ acquisition of hardware, software, and services. It operates a data streaming platform. The company has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. It also has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates in two segments: Applications and Commerce (A&C), and Core Platform (Core). The A&C segment offers applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to build and manage a WordPress site; marketing tools and services, such as GoDaddy Studio and search engine optimization designed to help businesses acquire and engage customers and create content; and digital marketing services include email marketing, reputation management, and development of brand guides. This segment also offers Microsoft 365 that connects to customers' domains; email service plans with a multi-feature web interface; email backup, encryption, archiving, and other advanced e-mail security services; added security functionality services; GoDaddy Payments, a payment facilitator that enables customers to accept various forms of payments; Smart Terminal, a dual screen all-in-one point-of-sale system that allows customers to manage in-store inventory and product catalogs and accept payments; payment acceptance solutions; and online store capabilities. The Core segment offers domain products, including primary registrations, domain aftermarket platform, and domain name add-ons, as well as GoDaddy Registry, a provider of domain name registry services; and hosting and security services comprising shared website hosting and virtual private servers, as well as security products with a suite of tools designed to help secure customers' online presence; and SSL certificates. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was founded in 1997 and is headquartered in Tempe, Arizona.

Latest IT Services and International Business Machines Corporation, GoDaddy Inc. Stock News

As of September 2, 2026, International Business Machines Corporation had a $218.3 billion market capitalization, compared to the IT Services median of $1.0 million. International Business Machines Corporation’s stock is down 20.8% in 2026, down 1.7% in the previous five trading days and down 4.06% in the past year.

Currently, International Business Machines Corporation’s price-earnings ratio is 20.6. International Business Machines Corporation’s trailing 12-month revenue is $69.1 billion with a 15.5% net profit margin. Year-over-year quarterly sales growth most recently was 1.1%. Analysts expect adjusted earnings to reach $12.321 per share for the current fiscal year. International Business Machines Corporation currently has a 2.9% dividend yield.

As of September 2, 2026, GoDaddy Inc. had a $12.9 billion market cap, putting it in the 81st percentile of all stocks. GoDaddy Inc.’s stock is down 16.5% in 2026, up 6.9% in the previous five trading days and down 29.45% in the past year.

Currently, GoDaddy Inc.’s price-earnings ratio is 15.1. GoDaddy Inc.’s trailing 12-month revenue is $5.1 billion with a 17.8% net profit margin. Year-over-year quarterly sales growth most recently was 6.6%. Analysts expect adjusted earnings to reach $9.623 per share for the current fiscal year. GoDaddy Inc. does not currently pay a dividend.

How We Compare International Business Machines Corporation and GoDaddy Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at International Business Machines Corporation and GoDaddy Inc.’s stock grades to see how they measure up against one another.

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International Business Machines Corporation and GoDaddy Inc. Growth Grades

Company Ticker Growth
International Business Machines Corporation IBM A
GoDaddy Inc. GDDY A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

International Business Machines Corporation has a Growth Score of 83, which is Very Strong. GoDaddy Inc. has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both International Business Machines Corporation and GoDaddy Inc. have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

International Business Machines Corporation and GoDaddy Inc.’s Momentum Grades

Company Ticker Momentum
International Business Machines Corporation IBM D
GoDaddy Inc. GDDY D

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

International Business Machines Corporation has a Momentum Score of 26, which is Weak. GoDaddy Inc. has a Momentum Score of 35, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither International Business Machines Corporation or GoDaddy Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if International Business Machines Corporation or GoDaddy Inc. is the better investment when it comes to momentum.

International Business Machines Corporation and GoDaddy Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
International Business Machines Corporation IBM C
GoDaddy Inc. GDDY C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

International Business Machines Corporation has a Earnings Estimate Score of 41, which is Neutral. GoDaddy Inc. has a Earnings Estimate Score of 53, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither International Business Machines Corporation or GoDaddy Inc. has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if International Business Machines Corporation or GoDaddy Inc. is the better investment when it comes to estimate revisions.

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Other International Business Machines Corporation and GoDaddy Inc. Grades

In addition to Momentum, Estimate Revisions and Growth, A+ Investor also provides grades for Value and Quality.

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Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether International Business Machines Corporation and GoDaddy Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, International Business Machines Corporation or GoDaddy Inc. Stock?

Overall, International Business Machines Corporation stock has a Growth Score of 83, Momentum Score of 26 and Estimate Revisions Score of 41.

GoDaddy Inc. stock has a Growth Score of 100, Momentum Score of 35 and Estimate Revisions Score of 53.

Comparing International Business Machines Corporation and GoDaddy Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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