VeriSign, Inc. (VRSN) vs Block, Inc. (XYZ)

VeriSign, Inc. and Block, Inc. are both Software Infrastructure companies. Block, Inc. is the larger, with a market value of $46.1B against $26.4B — 1.7× the size. VeriSign, Inc. trades at the lower P/E: 31.1× against 132×. VeriSign, Inc. grew revenue faster over the last twelve months: 6.86% against 5.07%. VeriSign, Inc. has the higher net margin (49.8% vs 1.43%) and the lower return on invested capital (0.00% vs 3.43%). Across the 21 metrics below, VeriSign, Inc. leads on 11 and Block, Inc. on 10.

Valuation

Metric VRSN XYZ Software Infrastructure median
P/E 31.12 131.76 28.02
P/S 15.27 1.82 3.07
P/B n/m 2.08 3.36
Price to free cash flow 24.47 11.77 17.12
EV/EBITDA 23.32 130.77 14.91
EV/Sales 16.03 1.86 3.03
Earnings yield 3.21% 0.76% 0.13%
Free cash flow yield 4.09% 8.49% 1.15%

Profitability

Metric VRSN XYZ Software Infrastructure median
Gross margin 88.47% 46.36% 61.23%
Operating margin 67.86% 4.67% 0.00%
Net margin 49.77% 1.43% 0.00%
Free cash flow margin 62.42% 15.50% 1.67%
Return on equity (40.02%) 1.62% 0.59%
Return on assets 52.95% 0.94% 0.00%
Return on invested capital 0.00% 3.43% 0.00%

Growth

Metric VRSN XYZ Software Infrastructure median
Revenue growth (TTM) 6.86% 5.07% 13.41%
EPS growth (last fiscal year) 10.13% (53.95%) —
Revenue growth, 5-year CAGR 5.54% 20.56% 15.81%
Net income growth, 5-year CAGR 0.26% 43.70% 0.00%

Health

Metric VRSN XYZ Software Infrastructure median
Debt to equity (1.04) 0.26 0.06
Current ratio 0.59 2.21 1.55
Net debt to EBITDA 1.06 0.22 0.08

Dividend

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

Size

Metric VRSN XYZ Software Infrastructure median
Market cap 26.36b 46.11b 835.96m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack