Akamai Technologies, Inc. (AKAM) vs VeriSign, Inc. (VRSN)

Akamai Technologies, Inc. and VeriSign, Inc. are both Software Infrastructure companies. VeriSign, Inc. is the larger, with a market value of $26.4B against $19.2B — 1.4× the size. VeriSign, Inc. trades at the lower P/E: 31.1× against 40.0×. VeriSign, Inc. grew revenue faster over the last twelve months: 6.86% against 5.87%. VeriSign, Inc. has the higher net margin (49.8% vs 9.51%) and the lower return on invested capital (0.00% vs 3.18%). Across the 21 metrics below, VeriSign, Inc. leads on 14 and Akamai Technologies, Inc. on 7.

Valuation

Metric AKAM VRSN Software Infrastructure median
P/E 39.98 31.12 28.02
P/S 3.81 15.27 3.07
P/B 3.47 n/m 3.36
Price to free cash flow 26.17 24.47 17.12
EV/EBITDA 17.34 23.32 14.91
EV/Sales 4.79 16.03 3.03
Earnings yield 2.50% 3.21% 0.13%
Free cash flow yield 3.82% 4.09% 1.15%

Profitability

Metric AKAM VRSN Software Infrastructure median
Gross margin 57.45% 88.47% 61.23%
Operating margin 10.54% 67.86% 0.00%
Net margin 9.51% 49.77% 0.00%
Free cash flow margin 14.57% 62.42% 1.67%
Return on equity 8.92% (40.02%) 0.59%
Return on assets 3.21% 52.95% 0.00%
Return on invested capital 3.18% 0.00% 0.00%

Growth

Metric AKAM VRSN Software Infrastructure median
Revenue growth (TTM) 5.87% 6.86% 13.41%
EPS growth (last fiscal year) (6.12%) 10.13% —
Revenue growth, 5-year CAGR 5.64% 5.54% 15.81%
Net income growth, 5-year CAGR (4.09%) 0.26% 0.00%

Health

Metric AKAM VRSN Software Infrastructure median
Debt to equity 1.59 (1.04) 0.06
Current ratio 1.64 0.59 1.55
Net debt to EBITDA 2.28 1.06 0.08

Dividend

Metric AKAM VRSN Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric AKAM VRSN Software Infrastructure median
Market cap 19.18b 26.36b 835.96m

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