CTSH vs. VRSN: Cognizant vs. VeriSign Stock Comparison
How do Cognizant (CTSH) and VeriSign (VRSN) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Cognizant (CTSH) and VeriSign (VRSN) both belong to the IT Services industry, though CTSH is classified under IT Consulting & Other Services while VRSN falls under Internet Services & Infrastructure.
| Profile Item | CTSH | VRSN |
|---|---|---|
| Name | Cognizant Technology Solutions Corp. Class A Common Stock | VeriSign, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | IT Services |
| GICS Sub-Industry | IT Consulting & Other Services | Internet Services & Infrastructure |
| Market Capitalization | 28.93 billion USD | 27.69 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 19, 1998 | January 30, 1998 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| Total Return (1Y) | -10.80% | 28.37% |
| Total Return (3Y, Annualized) | 1.40% | 15.25% |
| Total Return (5Y, Annualized) | -2.88% | 5.98% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| Volatility (1Y, Annualized) | 43.62% | 28.25% |
| Beta (5Y) | 0.83 | 0.67 |
| Max Drawdown (5Y) | -56.08% | -38.85% |
| Avg. Volume (3M) | 6.65M | 869.64K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| Sharpe Ratio (1Y) | -0.35 | 0.85 |
| Sortino Ratio (1Y) | -0.50 | 1.24 |
Profitability
ROE (TTM)
Capital efficiency shows on one side only: Cognizant (CTSH) earns 17.37% on shareholders’ equity, ranked against its industry; VeriSign (VRSN) has no ROE this period.
CTSH
Software & Services industry group
17.37%
- Max
- 53.85%
- Q3
- 17.90%
- CTSH
- 17.37%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
VRSN
Software & Services industry group
--
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
- VRSN
- --
Net Margin (TTM)
VeriSign (VRSN) at 49.07% converts revenue to bottom-line profit above its industry’s benchmark range, while Cognizant (CTSH) at 11.75% keeps roughly the typical share for its industry.
CTSH
Software & Services industry group
11.75%
- Max
- 41.17%
- Q3
- 15.28%
- CTSH
- 11.75%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
VRSN
Software & Services industry group
49.07%
- VRSN
- 49.07%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
VeriSign (VRSN) at 68.62% turns sales into operating profit above its industry’s benchmark range, while Cognizant (CTSH) at 16.30% operates around its industry’s norm.
CTSH
Software & Services industry group
16.30%
- Max
- 46.89%
- Q3
- 17.64%
- CTSH
- 16.30%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
VRSN
Software & Services industry group
68.62%
- VRSN
- 68.62%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| ROE (TTM) | 17.37% | -- |
| ROA (TTM) | 10.78% | 54.90% |
| Net Margin (TTM) | 11.75% | 49.07% |
| Operating Margin (TTM) | 16.30% | 68.62% |
| Gross Margin (TTM) | 33.42% | 88.57% |
Growth
Revenue Growth
Both Cognizant (CTSH) at 6.95% and VeriSign (VRSN) at 6.37% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.
EPS Growth
Both Cognizant (CTSH) at 1.11% and VeriSign (VRSN) at 10.13% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| Revenue Growth (YoY) | 6.95% | 6.37% |
| Revenue Growth (3Y CAGR) | 2.80% | 5.15% |
| EPS Growth (YoY) | 1.11% | 10.13% |
| EPS Growth (3Y CAGR) | 1.12% | 12.18% |
Financial Strength
Current Ratio (MRQ)
Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while VeriSign (VRSN) at 0.42 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for VRSN.
CTSH
Software & Services industry group
2.22
- Max
- 5.11
- Q3
- 2.77
- CTSH
- 2.22
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
VRSN
Software & Services industry group
0.42
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- VRSN
- 0.42
- Min
- 0.03
Debt / Equity (MRQ)
Only one side’s leverage can be read here: Cognizant (CTSH) carries debt-to-equity ratio of 0.14 against its industry range, while VeriSign (VRSN) reports no figure this period.
CTSH
Software & Services industry group
0.14
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- CTSH
- 0.14
- Q1
- 0.07
- Min
- 0.00
VRSN
Software & Services industry group
--
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
- VRSN
- --
Financial Strength Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| Current Ratio (MRQ) | 2.22 | 0.42 |
| Debt / Equity (MRQ) | 0.14 | -- |
| Net Debt / EBITDA | 0.14 | 1.09 |
Dividends
Dividend Yield (TTM)
Both Cognizant (CTSH) at 1.98% and VeriSign (VRSN) at 1.03% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.
CTSH
Software & Services industry group
1.98%
- CTSH
- 1.98%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRSN
Software & Services industry group
1.03%
- VRSN
- 1.03%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Cognizant (CTSH) at 23.72% and VeriSign (VRSN) at 34.45% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.
CTSH
Software & Services industry group
23.72%
- CTSH
- 23.72%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRSN
Software & Services industry group
34.45%
- VRSN
- 34.45%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 1.98% | 1.03% |
| Dividend Payout Ratio (TTM) | 23.72% | 34.45% |
Valuation
P/E Ratio (TTM)
Cognizant (CTSH) at 11.81 sits in the cheaper P/E ratio quartile, while VeriSign (VRSN) at 33.23 is closer to its industry’s usual earnings multiple — a discount for CTSH, though growth and earnings durability still matter.
CTSH
Software & Services industry group
11.81
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- CTSH
- 11.81
- Min
- 6.69
VRSN
Software & Services industry group
33.23
- Max
- 112.94
- Q3
- 60.32
- VRSN
- 33.23
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Cognizant (CTSH) at 1.32 looks cheap on sales in the lower P/S ratio quartile, while VeriSign (VRSN) at 15.99 looks rich in the upper quartile — a clear gap in price per dollar of revenue.
CTSH
Software & Services industry group
1.32
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- CTSH
- 1.32
- Min
- 0.02
VRSN
Software & Services industry group
15.99
- Max
- 17.91
- VRSN
- 15.99
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
VeriSign (VRSN) reports a negative P/B ratio of -12.13, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Cognizant (CTSH) reports 1.97, ranking against industry peers normally.
CTSH
Software & Services industry group
1.97
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- CTSH
- 1.97
- Q1
- 1.92
- Min
- -3.90
VRSN
Software & Services industry group
-12.13
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
- VRSN
- -12.13
Valuation Metrics
| Metric | CTSH | VRSN |
|---|---|---|
| P/E Ratio (TTM) | 11.81 | 33.23 |
| P/S Ratio (TTM) | 1.32 | 15.99 |
| P/B Ratio (MRQ) | 1.97 | -12.13 |
| Free Cash Flow Yield (TTM) | 7.19% | 2.89% |