PAYC vs. VRSN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PAYC and VRSN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | PAYC | VRSN |
|---|---|---|
| Company Name | Paycom Software, Inc. | VeriSign, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Information Technology |
| GICS Industry | Professional Services | IT Services |
| Market Capitalization | 12.24 billion USD | 26.57 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | April 15, 2014 | January 30, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of PAYC 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.
Historical Performance at a Glance
| Symbol | PAYC | VRSN |
|---|---|---|
| 5-Day Price Return | -4.27% | -3.09% |
| 13-Week Price Return | -10.05% | -4.90% |
| 26-Week Price Return | -6.55% | 7.92% |
| 52-Week Price Return | 24.04% | 44.73% |
| Month-to-Date Return | -8.37% | -1.66% |
| Year-to-Date Return | 1.55% | 32.84% |
| 10-Day Avg. Volume | 0.78M | 0.83M |
| 3-Month Avg. Volume | 0.63M | 0.82M |
| 3-Month Volatility | 29.85% | 28.81% |
| Beta | 0.89 | 0.79 |
Profitability
Return on Equity (TTM)
PAYC
25.35%
Professional Services Industry
- Max
- 68.01%
- Q3
- 35.32%
- Median
- 21.92%
- Q1
- 11.67%
- Min
- -20.25%
PAYC’s Return on Equity of 25.35% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
VRSN
113.55%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
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.
Net Profit Margin (TTM)
PAYC
21.21%
Professional Services Industry
- Max
- 31.75%
- Q3
- 15.50%
- Median
- 8.95%
- Q1
- 4.51%
- Min
- 0.35%
A Net Profit Margin of 21.21% places PAYC in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
VRSN
50.03%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
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.
Operating Profit Margin (TTM)
PAYC
28.10%
Professional Services Industry
- Max
- 30.62%
- Q3
- 19.06%
- Median
- 13.60%
- Q1
- 8.60%
- Min
- -2.18%
An Operating Profit Margin of 28.10% places PAYC in the upper quartile for the Professional Services 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
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
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.
Profitability at a Glance
| Symbol | PAYC | VRSN |
|---|---|---|
| Return on Equity (TTM) | 25.35% | 113.55% |
| Return on Assets (TTM) | 9.26% | 55.87% |
| Net Profit Margin (TTM) | 21.21% | 50.03% |
| Operating Profit Margin (TTM) | 28.10% | 67.89% |
| Gross Profit Margin (TTM) | 82.44% | 87.88% |
Financial Strength
Current Ratio (MRQ)
PAYC
1.30
Professional Services Industry
- Max
- 2.28
- Q3
- 1.75
- Median
- 1.34
- Q1
- 1.10
- Min
- 0.47
PAYC’s Current Ratio of 1.30 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.
VRSN
0.54
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
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.
Debt-to-Equity Ratio (MRQ)
PAYC
0.00
Professional Services Industry
- Max
- 2.93
- Q3
- 1.45
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.00
Falling into the lower quartile for the Professional Services industry, PAYC’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
VRSN
1.07
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- 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.
Interest Coverage Ratio (TTM)
PAYC
191.88
Professional Services Industry
- Max
- 39.45
- Q3
- 20.41
- Median
- 11.64
- Q1
- 5.46
- Min
- -1.21
With an Interest Coverage Ratio of 191.88, PAYC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.
VRSN
27.96
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
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.
Financial Strength at a Glance
| Symbol | PAYC | VRSN |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 0.54 |
| Quick Ratio (MRQ) | 1.27 | 0.50 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 1.07 |
| Interest Coverage Ratio (TTM) | 191.88 | 27.96 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
PAYC
0.71%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
PAYC’s Dividend Yield of 0.71% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
VRSN
0.00%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- 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.
Dividend Payout Ratio (TTM)
PAYC
20.52%
Professional Services Industry
- Max
- 128.51%
- Q3
- 69.03%
- Median
- 47.00%
- Q1
- 18.05%
- Min
- 0.00%
PAYC’s Dividend Payout Ratio of 20.52% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
VRSN
0.00%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- 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.
Dividend at a Glance
| Symbol | PAYC | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 0.71% | 0.00% |
| Dividend Payout Ratio (TTM) | 20.52% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
PAYC
28.98
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
PAYC’s P/E Ratio of 28.98 is within the middle range for the Professional Services 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
32.41
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
VRSN’s P/E Ratio of 32.41 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
PAYC
6.15
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
PAYC’s P/S Ratio of 6.15 is in the upper echelon for the Professional Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
VRSN
16.22
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
With a P/S Ratio of 16.22, 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.
Price-to-Book Ratio (MRQ)
PAYC
7.19
Professional Services Industry
- Max
- 18.75
- Q3
- 9.53
- Median
- 5.88
- Q1
- 2.95
- Min
- 0.59
PAYC’s P/B Ratio of 7.19 is within the conventional range for the Professional Services 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
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
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.
Valuation at a Glance
| Symbol | PAYC | VRSN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.98 | 32.41 |
| Price-to-Sales Ratio (TTM) | 6.15 | 16.22 |
| Price-to-Book Ratio (MRQ) | 7.19 | 11.17 |
| Price-to-Free Cash Flow Ratio (TTM) | 33.95 | 27.28 |