VeriSign vs PayPal Which Offers More Value?

VeriSign and PayPal are two well-known companies in the digital security and online payment industries. VeriSign specializes in providing secure infrastructure services, such as SSL certificates and domain name registration, while PayPal offers a safe and convenient way for users to make electronic payments. Both companies are publicly traded on the stock market, with investors closely monitoring their performance and growth potential. In this comparison, we will explore the key differences and similarities between VeriSign and PayPal stocks.

VeriSign or PayPal?

When comparing VeriSign and PayPal, 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 VeriSign and PayPal.

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. VeriSign has a dividend yield of -%, while PayPal has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. VeriSign reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, PayPal 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 VeriSign P/E ratio at 20.97 and PayPal's P/E ratio at 19.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. VeriSign P/B ratio is -9.48 while PayPal's P/B ratio is 4.37.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $184.15 for VeriSign and $83.38 for PayPal. Over the past year, VeriSign's prices ranged from $167.05 to $220.91, with a yearly change of 32.24%. PayPal's prices fluctuated between $53.98 and $87.47, with a yearly change of 62.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.