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CSCO vs. VRSN: A Head-to-Head Stock Comparison

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Here’s a clear look at CSCO and VRSN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCSCOVRSN
Company NameCisco Systems, Inc.VeriSign, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentIT Services
Market Capitalization278.78 billion USD24.99 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateFebruary 16, 1990January 30, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CSCO and VRSN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

CSCO vs. VRSN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCSCOVRSN
5-Day Price Return0.72%-2.37%
13-Week Price Return14.16%-4.32%
26-Week Price Return13.06%21.49%
52-Week Price Return56.93%52.99%
Month-to-Date Return3.41%-0.51%
Year-to-Date Return18.92%29.25%
10-Day Avg. Volume23.90M1.17M
3-Month Avg. Volume21.37M0.92M
3-Month Volatility19.90%29.70%
Beta0.980.78

Profitability

Return on Equity (TTM)

CSCO

21.50%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 21.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

VRSN

113.55%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

VRSN’s Return on Equity of 113.55% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CSCO vs. VRSN: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Net Profit Margin (TTM)

CSCO

17.60%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

A Net Profit Margin of 17.60% places CSCO in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

VRSN

50.03%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

VRSN’s Net Profit Margin of 50.03% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

CSCO vs. VRSN: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Operating Profit Margin (TTM)

CSCO

20.30%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

An Operating Profit Margin of 20.30% places CSCO in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

VRSN

67.89%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

VRSN’s Operating Profit Margin of 67.89% is exceptionally high, placing it well above the typical range for the IT Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

CSCO vs. VRSN: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Profitability at a Glance

SymbolCSCOVRSN
Return on Equity (TTM)21.50%113.55%
Return on Assets (TTM)8.01%55.87%
Net Profit Margin (TTM)17.60%50.03%
Operating Profit Margin (TTM)20.30%67.89%
Gross Profit Margin (TTM)65.24%87.88%

Financial Strength

Current Ratio (MRQ)

CSCO

0.95

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

CSCO’s Current Ratio of 0.95 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

VRSN

0.54

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

VRSN’s Current Ratio of 0.54 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CSCO vs. VRSN: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CSCO

0.64

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

CSCO’s Debt-to-Equity Ratio of 0.64 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

VRSN

1.07

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

VRSN’s Debt-to-Equity Ratio of 1.07 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CSCO vs. VRSN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

CSCO

936.58

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

With an Interest Coverage Ratio of 936.58, CSCO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Communications Equipment industry. This stems from either robust earnings or a conservative debt load.

VRSN

27.96

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

VRSN’s Interest Coverage Ratio of 27.96 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

CSCO vs. VRSN: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolCSCOVRSN
Current Ratio (MRQ)0.950.54
Quick Ratio (MRQ)0.870.50
Debt-to-Equity Ratio (MRQ)0.641.07
Interest Coverage Ratio (TTM)936.5827.96

Growth

Revenue Growth

CSCO vs. VRSN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CSCO vs. VRSN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CSCO

2.30%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Yield of 2.30% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

VRSN

0.00%

IT Services Industry

Max
2.80%
Q3
1.74%
Median
0.62%
Q1
0.00%
Min
0.00%

VRSN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CSCO vs. VRSN: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

CSCO

65.54%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Payout Ratio of 65.54% is in the upper quartile for the Communications Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

VRSN

0.00%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
Q1
0.00%
Min
0.00%

VRSN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CSCO vs. VRSN: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Dividend at a Glance

SymbolCSCOVRSN
Dividend Yield (TTM)2.30%0.00%
Dividend Payout Ratio (TTM)65.54%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

CSCO

28.47

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

CSCO’s P/E Ratio of 28.47 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

VRSN

31.67

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

A P/E Ratio of 31.67 places VRSN in the upper quartile for the IT Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CSCO vs. VRSN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

CSCO

5.01

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

CSCO’s P/S Ratio of 5.01 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

VRSN

15.84

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

With a P/S Ratio of 15.84, VRSN trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CSCO vs. VRSN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

CSCO

4.92

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

CSCO’s P/B Ratio of 4.92 is within the conventional range for the Communications Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

VRSN

11.17

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

VRSN’s P/B Ratio of 11.17 is in the upper tier for the IT Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

CSCO vs. VRSN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and IT Services industry benchmarks.

Valuation at a Glance

SymbolCSCOVRSN
Price-to-Earnings Ratio (TTM)28.4731.67
Price-to-Sales Ratio (TTM)5.0115.84
Price-to-Book Ratio (MRQ)4.9211.17
Price-to-Free Cash Flow Ratio (TTM)21.7726.65