Global Payments Inc. (GPN) vs VeriSign, Inc. (VRSN)

Global Payments Inc. and VeriSign, Inc. are both Software Infrastructure companies. VeriSign, Inc. is the larger, with a market value of $27.5B against $22.3B — 1.2× the size. Global Payments Inc. has negative trailing earnings, so its P/E is not meaningful; VeriSign, Inc. trades at 32.8×. Global Payments Inc. grew revenue faster over the last twelve months: 43.1% against 6.86%. VeriSign, Inc. has the higher net margin (49.8% vs −9.15%) and the lower return on invested capital (0.00% vs 2.01%). Both pay a dividend; Global Payments Inc. yields more (1.20% vs 1.06%). Across the 21 metrics below, VeriSign, Inc. leads on 12 and Global Payments Inc. on 9.

Valuation

Metric GPN VRSN Software Infrastructure median
P/E n/m 32.76 28.38
P/S 2.21 16.07 2.98
P/B 0.95 n/m 2.93
Price to free cash flow 27.45 25.75 16.28
EV/EBITDA 10.48 24.48 13.92
EV/Sales 3.88 16.84 2.90
Earnings yield (3.55%) 3.05% 0.14%
Free cash flow yield 3.64% 3.88% 1.24%

Profitability

Metric GPN VRSN Software Infrastructure median
Gross margin 63.91% 88.47% 61.00%
Operating margin 12.84% 67.86% 0.00%
Net margin (9.15%) 49.77% 0.00%
Free cash flow margin 8.06% 62.42% 1.67%
Return on equity (3.97%) (40.02%) 0.60%
Return on assets (1.67%) 52.95% 0.00%
Return on invested capital 2.01% 0.00% 0.00%

Growth

Metric GPN VRSN Software Infrastructure median
Revenue growth (TTM) 43.06% 6.86% 13.41%
EPS growth (last fiscal year) (6.01%) 10.13% 27.10%
Revenue growth, 5-year CAGR 0.75% 5.54% 15.57%
Net income growth, 5-year CAGR 19.09% 0.26% 0.00%

Health

Metric GPN VRSN Software Infrastructure median
Debt to equity 0.94 (1.04) 0.05
Current ratio 0.82 0.59 1.55
Net debt to EBITDA 3.98 1.06 0.08

Dividend

Metric GPN VRSN Software Infrastructure median
Dividend yield 1.20% 1.06% 1.20%
Payout ratio — 0.35 0.29

Size

Metric GPN VRSN Software Infrastructure median
Market cap 22.27b 27.46b 752.37m

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