PayPal vs VeriSign Which Should You Buy?

PayPal and VeriSign are two leading companies in the financial technology industry, each offering unique opportunities for investors. PayPal, known for its secure online payment system, has seen steady growth in recent years with the rise of e-commerce and digital payments. VeriSign, a provider of domain name registry services and internet security solutions, has also shown resilience in the market with its essential role in internet infrastructure. Both stocks offer potential for long-term growth and diversification in a dynamic sector.

PayPal or VeriSign?

When comparing PayPal and VeriSign, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between PayPal and VeriSign.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. PayPal has a dividend yield of -%, while VeriSign has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PayPal reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, VeriSign reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with PayPal P/E ratio at 20.86 and VeriSign's P/E ratio at 22.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PayPal P/B ratio is 4.58 while VeriSign's P/B ratio is -10.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PayPal has seen a 5-year revenue growth of 1.07%, while VeriSign's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PayPal's ROE at 21.46% and VeriSign's ROE at -49.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.82 for PayPal and $196.43 for VeriSign. Over the past year, PayPal's prices ranged from $55.77 to $93.66, with a yearly change of 67.94%. VeriSign's prices fluctuated between $167.05 and $210.02, with a yearly change of 25.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.