Analyzing VeriSign (VRSN) and The Competition
VeriSign (NASDAQ: VRSN) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare VeriSign to similar businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.
Earnings and Valuation
This table compares VeriSign and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|VeriSign||$1.15 billion||$747.69 million||29.58|
|VeriSign Competitors||$2.14 billion||$366.36 million||15.67|
VeriSign’s competitors have higher revenue, but lower earnings than VeriSign. VeriSign is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
VeriSign has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, VeriSign’s competitors have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for VeriSign and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
VeriSign currently has a consensus price target of $99.50, indicating a potential downside of 8.35%. As a group, “IT Services & Consulting” companies have a potential upside of 1.46%. Given VeriSign’s competitors stronger consensus rating and higher possible upside, analysts clearly believe VeriSign has less favorable growth aspects than its competitors.
Institutional and Insider Ownership
61.2% of shares of all “IT Services & Consulting” companies are held by institutional investors. 0.9% of VeriSign shares are held by insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares VeriSign and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
VeriSign competitors beat VeriSign on 8 of the 13 factors compared.
VeriSign, Inc. is a provider of domain name registry services and Internet security. The Company operates through Registry Services and Security Services segment. Registry Services ensure the security, stability and resiliency of Internet infrastructure and services, including the .com and .net domains, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (DDoS) Protection Services and Managed DNS Services. DDoS Protection Services supports online business continuity by providing monitoring and mitigation services against DDoS attacks. Managed DNS Services is a hosting service that delivers DNS resolution for the availability of Web-based systems.
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