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

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

Company Profile

SymbolEAVRSN
Company NameElectronic Arts Inc.VeriSign, Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesInformation Technology
GICS IndustryEntertainmentIT Services
Market Capitalization42.87 billion USD25.35 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 20, 1989January 30, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of EA 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.

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

Historical Performance at a Glance

SymbolEAVRSN
5-Day Price Return-4.29%1.72%
13-Week Price Return13.86%-3.92%
26-Week Price Return31.98%18.35%
52-Week Price Return14.47%48.47%
Month-to-Date Return12.35%0.95%
Year-to-Date Return17.11%31.15%
10-Day Avg. Volume3.64M0.91M
3-Month Avg. Volume3.03M0.90M
3-Month Volatility26.75%29.51%
Beta0.740.78

Profitability

Return on Equity (TTM)

EA

15.27%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

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.

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

Net Profit Margin (TTM)

EA

13.94%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

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.

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

Operating Profit Margin (TTM)

EA

19.09%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

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.

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

Profitability at a Glance

SymbolEAVRSN
Return on Equity (TTM)15.27%113.55%
Return on Assets (TTM)8.23%55.87%
Net Profit Margin (TTM)13.94%50.03%
Operating Profit Margin (TTM)19.09%67.89%
Gross Profit Margin (TTM)79.14%87.88%

Financial Strength

Current Ratio (MRQ)

EA

0.84

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment 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.

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

Debt-to-Equity Ratio (MRQ)

EA

0.31

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment 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.

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

Interest Coverage Ratio (TTM)

EA

190.43

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment 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.

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

Financial Strength at a Glance

SymbolEAVRSN
Current Ratio (MRQ)0.840.54
Quick Ratio (MRQ)0.840.50
Debt-to-Equity Ratio (MRQ)0.311.07
Interest Coverage Ratio (TTM)190.4327.96

Growth

Revenue Growth

EA 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

EA 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)

EA

0.46%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

EA’s Dividend Yield of 0.46% is consistent with its peers in the Entertainment 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.

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

Dividend Payout Ratio (TTM)

EA

18.91%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

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

Dividend at a Glance

SymbolEAVRSN
Dividend Yield (TTM)0.46%0.00%
Dividend Payout Ratio (TTM)18.91%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

EA

41.09

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

EA’s P/E Ratio of 41.09 is within the middle range for the Entertainment 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

31.73

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

A P/E Ratio of 31.73 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.

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

Price-to-Sales Ratio (TTM)

EA

5.73

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

EA’s P/S Ratio of 5.73 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

VRSN

15.88

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

With a P/S Ratio of 15.88, 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.

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

Price-to-Book Ratio (MRQ)

EA

6.60

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment 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.

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

Valuation at a Glance

SymbolEAVRSN
Price-to-Earnings Ratio (TTM)41.0931.73
Price-to-Sales Ratio (TTM)5.7315.88
Price-to-Book Ratio (MRQ)6.6011.17
Price-to-Free Cash Flow Ratio (TTM)23.0526.71