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IBM vs. VRSN: IBM vs. VeriSign Stock Comparison

How do IBM (IBM) 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

IBM (IBM) and VeriSign (VRSN) both belong to the IT Services industry, though IBM is classified under IT Consulting & Other Services while VRSN falls under Internet Services & Infrastructure.

Company profile comparison for IBM (IBM) and VeriSign (VRSN)
Profile ItemIBMVRSN
NameInternational Business Machines CorporationVeriSign, Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesIT Services
GICS Sub-IndustryIT Consulting & Other ServicesInternet Services & Infrastructure
Market Capitalization231.55 billion USD27.69 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962January 30, 1998
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
VRSN
GSPC
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IBM (IBM) vs. VeriSign (VRSN), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for IBM (IBM) and VeriSign (VRSN). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for IBM (IBM) and VeriSign (VRSN). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
Total Return (1Y)-16.98%28.37%
Total Return (3Y, Annualized)22.40%15.25%
Total Return (5Y, Annualized)19.64%5.98%

Risk Profile

Drawdown History

IBM
VRSN
GSPC
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IBM (IBM) vs. VeriSign (VRSN), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for IBM (IBM) and VeriSign (VRSN). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
Volatility (1Y, Annualized)48.48%28.25%
Beta (5Y)0.790.67
Max Drawdown (5Y)-37.50%-38.85%
Avg. Volume (3M)5.30M869.64K

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and VRSN are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
Sharpe Ratio (1Y)-0.440.85
Sortino Ratio (1Y)-0.561.24

Profitability

ROE (TTM)

Capital efficiency shows on one side only: IBM (IBM) earns 34.77% on shareholders’ equity, ranked against its industry; VeriSign (VRSN) has no ROE this period.

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
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
--
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IBM (IBM) vs. VeriSign (VRSN): VRSN does not report ROE, so it has no value marker; IBM is benchmarked against the Software & Services industry group.

Net Margin (TTM)

VeriSign (VRSN) at 49.07% keeps the most of each sales dollar — above its industry’s net margin range — and IBM (IBM) at 15.99% also retains a top-quartile share.

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
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%
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

VeriSign (VRSN) at 68.62% turns sales into operating profit above its industry’s benchmark range, while IBM (IBM) at 16.97% operates around its industry’s norm.

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
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%
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
ROE (TTM)34.77%--
ROA (TTM)5.33%54.90%
Net Margin (TTM)15.99%49.07%
Operating Margin (TTM)16.97%68.62%
Gross Margin (TTM)57.97%88.57%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while VeriSign (VRSN) at 6.37% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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IBM (IBM) vs. VeriSign (VRSN): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while VeriSign (VRSN) at 10.13% is closer to the peer norm — faster per-share earnings growth for IBM.

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IBM (IBM) vs. VeriSign (VRSN): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
Revenue Growth (YoY)7.62%6.37%
Revenue Growth (3Y CAGR)3.72%5.15%
EPS Growth (YoY)73.72%10.13%
EPS Growth (3Y CAGR)83.76%12.18%

Financial Strength

Current Ratio (MRQ)

Both IBM (IBM) at 0.86 and VeriSign (VRSN) at 0.42 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
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
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: IBM (IBM) carries debt-to-equity ratio of 1.85 against its industry range, while VeriSign (VRSN) reports no figure this period.

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
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
--
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IBM (IBM) vs. VeriSign (VRSN): VRSN does not report debt-to-equity ratio, so it has no value marker; IBM is benchmarked against the Software & Services industry group.

Financial Strength Metrics

Financial strength metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
Current Ratio (MRQ)0.860.42
Debt / Equity (MRQ)1.85--
Net Debt / EBITDA3.371.09

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.73% and VeriSign (VRSN) at 1.03% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

IBM

Software & Services industry group

2.73%

IBM
2.73%
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%
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both IBM (IBM) at 57.51% 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.

IBM

Software & Services industry group

57.51%

IBM
57.51%
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%
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
Dividend Yield (TTM)2.73%1.03%
Dividend Payout Ratio (TTM)57.51%34.45%

Valuation

P/E Ratio (TTM)

Both IBM (IBM) at 20.90 and VeriSign (VRSN) at 33.23 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
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
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while VeriSign (VRSN) at 15.99 sits in the pricier quartile — VRSN costs more per dollar of sales.

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
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
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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 IBM (IBM) reports 6.52, ranking against industry peers normally.

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
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
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IBM (IBM) vs. VeriSign (VRSN): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and VeriSign (VRSN)
MetricIBMVRSN
P/E Ratio (TTM)20.9033.23
P/S Ratio (TTM)3.3115.99
P/B Ratio (MRQ)6.52-12.13
Free Cash Flow Yield (TTM)5.34%2.89%