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 $50.8B against $28.0B — 1.8× the size. VeriSign, Inc. trades at the lower P/E: 33.5× against 112×. Block, Inc. grew revenue faster over the last twelve months: 6.98% against 6.46%. VeriSign, Inc. has the higher net margin (49.1% vs 1.80%) and the lower return on invested capital (0.00% vs 3.58%). Across the 21 metrics below, Block, Inc. leads on 11 and VeriSign, Inc. on 10.

Valuation

Metric VRSN XYZ Software Infrastructure median
P/E 33.55 111.61 24.43
P/S 16.25 1.98 2.81
P/B n/m 2.22 2.88
Price to free cash flow 27.49 14.73 17.94
EV/EBITDA 25.23 135.86 14.51
EV/Sales 17.32 1.96 2.91
Earnings yield 2.98% 0.90% 0.00%
Free cash flow yield 3.64% 6.79% 0.49%

Profitability

Metric VRSN XYZ Software Infrastructure median
Gross margin 88.57% 47.50% 57.45%
Operating margin 67.63% 4.64% 0.00%
Net margin 49.07% 1.80% 0.00%
Free cash flow margin 59.12% 13.47% 0.00%
Return on equity (39.20%) 2.03% 0.00%
Return on assets 63.33% 1.15% 0.00%
Return on invested capital 0.00% 3.58% 0.00%

Growth

Metric VRSN XYZ Software Infrastructure median
Revenue growth (TTM) 6.46% 6.98% 14.28%
EPS growth (last fiscal year) 10.13% (53.95%) 18.26%
Revenue growth, 5-year CAGR 5.54% 20.56% 16.15%
Net income growth, 5-year CAGR 0.26% 43.70% 0.00%

Health

Metric VRSN XYZ Software Infrastructure median
Debt to equity (0.78) 0.25 0.02
Current ratio 0.42 2.23 1.53
Net debt to EBITDA 1.06 0.22 0.05

Dividend

Metric VRSN XYZ Software Infrastructure median
Dividend yield 1.02% — 1.06%
Payout ratio 0.34 — 0.29

Size

Metric VRSN XYZ Software Infrastructure median
Market cap 27.99b 50.80b 661.51m

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