Financial Review: VNET Group (NASDAQ:VNET) & VeriSign (NASDAQ:VRSN)

VNET Group (NASDAQ:VNETGet Free Report) and VeriSign (NASDAQ:VRSNGet Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares VNET Group and VeriSign”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VNET Group $1.42 billion 1.20 -$36.01 million ($1.42) -4.45
VeriSign $1.66 billion 15.92 $825.70 million $9.22 31.67

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

Insider & Institutional Ownership

72.8% of VNET Group shares are owned by institutional investors. Comparatively, 92.9% of VeriSign shares are owned by institutional investors. 12.1% of VNET Group shares are owned by insiders. Comparatively, 0.6% of VeriSign shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares VNET Group and VeriSign’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VNET Group -22.29% -36.25% -4.43%
VeriSign 49.76% -39.20% 58.32%

Risk and Volatility

VNET Group has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, VeriSign has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for VNET Group and VeriSign, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VNET Group 1 1 4 0 2.50
VeriSign 0 1 4 1 3.00

VNET Group currently has a consensus price target of $16.90, suggesting a potential upside of 167.58%. VeriSign has a consensus price target of $333.00, suggesting a potential upside of 14.04%. Given VNET Group’s higher probable upside, analysts plainly believe VNET Group is more favorable than VeriSign.

Summary

VeriSign beats VNET Group on 11 of the 14 factors compared between the two stocks.

About VNET Group

(Get Free Report)

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

About VeriSign

(Get Free Report)

VeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It operates directory for .name and .cc; and back-end systems for .edu, domain names. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.

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