TEL vs. VRSN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TEL and VRSN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TEL | VRSN |
|---|---|---|
| Company Name | TE Connectivity plc | VeriSign, Inc. |
| Country | Ireland | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Electronic Equipment, Instruments & Components | IT Services |
| Market Capitalization | 66.31 billion USD | 25.02 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 14, 2007 | January 30, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TEL 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 | TEL | VRSN |
|---|---|---|
| 5-Day Price Return | 1.50% | -2.74% |
| 13-Week Price Return | 29.99% | -7.55% |
| 26-Week Price Return | 72.67% | 4.87% |
| 52-Week Price Return | 55.23% | 45.29% |
| Month-to-Date Return | 2.23% | -4.18% |
| Year-to-Date Return | 56.98% | 29.44% |
| 10-Day Avg. Volume | 1.54M | 0.67M |
| 3-Month Avg. Volume | 1.76M | 0.80M |
| 3-Month Volatility | 27.47% | 28.36% |
| Beta | 1.25 | 0.79 |
Profitability
Return on Equity (TTM)
TEL
11.82%
Electronic Equipment, Instruments & Components Industry
- Max
- 21.57%
- Q3
- 13.27%
- Median
- 8.55%
- Q1
- 4.42%
- Min
- -4.21%
TEL’s Return on Equity of 11.82% is on par with the norm for the Electronic Equipment, Instruments & Components 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)
TEL
8.78%
Electronic Equipment, Instruments & Components Industry
- Max
- 17.31%
- Q3
- 10.85%
- Median
- 7.26%
- Q1
- 3.13%
- Min
- -3.00%
TEL’s Net Profit Margin of 8.78% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.
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)
TEL
17.77%
Electronic Equipment, Instruments & Components Industry
- Max
- 30.04%
- Q3
- 15.08%
- Median
- 9.55%
- Q1
- 4.27%
- Min
- -3.83%
An Operating Profit Margin of 17.77% places TEL in the upper quartile for the Electronic Equipment, Instruments & Components 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 | TEL | VRSN |
|---|---|---|
| Return on Equity (TTM) | 11.82% | 113.55% |
| Return on Assets (TTM) | 6.20% | 55.87% |
| Net Profit Margin (TTM) | 8.78% | 50.03% |
| Operating Profit Margin (TTM) | 17.77% | 67.89% |
| Gross Profit Margin (TTM) | 34.99% | 87.88% |
Financial Strength
Current Ratio (MRQ)
TEL
1.52
Electronic Equipment, Instruments & Components Industry
- Max
- 4.57
- Q3
- 2.85
- Median
- 2.03
- Q1
- 1.51
- Min
- 0.62
TEL’s Current Ratio of 1.52 aligns with the median group of the Electronic Equipment, Instruments & Components 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)
TEL
0.46
Electronic Equipment, Instruments & Components Industry
- Max
- 1.14
- Q3
- 0.54
- Median
- 0.30
- Q1
- 0.11
- Min
- 0.00
TEL’s Debt-to-Equity Ratio of 0.46 is typical for the Electronic Equipment, Instruments & Components 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
- 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)
TEL
114.40
Electronic Equipment, Instruments & Components Industry
- Max
- 79.05
- Q3
- 36.62
- Median
- 12.51
- Q1
- 3.72
- Min
- -18.73
With an Interest Coverage Ratio of 114.40, TEL demonstrates a superior capacity to service its debt, placing it well above the typical range for the Electronic Equipment, Instruments & Components 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 | TEL | VRSN |
|---|---|---|
| Current Ratio (MRQ) | 1.52 | 0.54 |
| Quick Ratio (MRQ) | 0.83 | 0.50 |
| Debt-to-Equity Ratio (MRQ) | 0.46 | 1.07 |
| Interest Coverage Ratio (TTM) | 114.40 | 27.96 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TEL
1.21%
Electronic Equipment, Instruments & Components Industry
- Max
- 5.36%
- Q3
- 2.53%
- Median
- 1.28%
- Q1
- 0.16%
- Min
- 0.00%
TEL’s Dividend Yield of 1.21% is consistent with its peers in the Electronic Equipment, Instruments & Components 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)
TEL
54.30%
Electronic Equipment, Instruments & Components Industry
- Max
- 218.94%
- Q3
- 90.25%
- Median
- 38.81%
- Q1
- 3.69%
- Min
- 0.00%
TEL’s Dividend Payout Ratio of 54.30% is within the typical range for the Electronic Equipment, Instruments & Components 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 | TEL | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 1.21% | 0.00% |
| Dividend Payout Ratio (TTM) | 54.30% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
TEL
44.96
Electronic Equipment, Instruments & Components Industry
- Max
- 74.74
- Q3
- 42.40
- Median
- 26.55
- Q1
- 20.05
- Min
- 10.12
A P/E Ratio of 44.96 places TEL in the upper quartile for the Electronic Equipment, Instruments & Components industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
VRSN
31.08
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
VRSN’s P/E Ratio of 31.08 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)
TEL
3.95
Electronic Equipment, Instruments & Components Industry
- Max
- 6.79
- Q3
- 3.58
- Median
- 2.05
- Q1
- 1.29
- Min
- 0.20
TEL’s P/S Ratio of 3.95 is in the upper echelon for the Electronic Equipment, Instruments & Components 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
15.55
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
With a P/S Ratio of 15.55, 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)
TEL
4.00
Electronic Equipment, Instruments & Components Industry
- Max
- 6.92
- Q3
- 3.80
- Median
- 2.23
- Q1
- 1.42
- Min
- 0.44
TEL’s P/B Ratio of 4.00 is in the upper tier for the Electronic Equipment, Instruments & Components 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.
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 | TEL | VRSN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 44.96 | 31.08 |
| Price-to-Sales Ratio (TTM) | 3.95 | 15.55 |
| Price-to-Book Ratio (MRQ) | 4.00 | 11.17 |
| Price-to-Free Cash Flow Ratio (TTM) | 22.70 | 26.16 |