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

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

Company Profile

SymbolTTDVRSN
Company NameThe Trade Desk, Inc.VeriSign, Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesInformation Technology
GICS IndustryMediaIT Services
Market Capitalization25.61 billion USD24.88 billion USD
ExchangeNasdaqGMNasdaqGS
Listing DateSeptember 21, 2016January 30, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of TTD 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.

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

Historical Performance at a Glance

SymbolTTDVRSN
5-Day Price Return-0.30%-1.05%
13-Week Price Return-29.54%-5.49%
26-Week Price Return-31.77%14.96%
52-Week Price Return-49.24%47.94%
Month-to-Date Return-39.78%-0.92%
Year-to-Date Return-55.44%28.72%
10-Day Avg. Volume16.03M0.80M
3-Month Avg. Volume12.59M0.89M
3-Month Volatility86.74%29.64%
Beta1.450.78

Profitability

Return on Equity (TTM)

TTD

15.19%

Media Industry

Max
34.77%
Q3
16.01%
Median
10.70%
Q1
2.80%
Min
-2.36%

TTD’s Return on Equity of 15.19% is on par with the norm for the Media 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.

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

Net Profit Margin (TTM)

TTD

15.57%

Media Industry

Max
16.04%
Q3
10.15%
Median
5.18%
Q1
2.39%
Min
-3.66%

A Net Profit Margin of 15.57% places TTD in the upper quartile for the Media industry, signifying strong profitability and more effective cost management than most of its peers.

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.

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

Operating Profit Margin (TTM)

TTD

17.73%

Media Industry

Max
24.65%
Q3
13.68%
Median
8.96%
Q1
4.53%
Min
-8.09%

An Operating Profit Margin of 17.73% places TTD in the upper quartile for the Media 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
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.

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

Profitability at a Glance

SymbolTTDVRSN
Return on Equity (TTM)15.19%113.55%
Return on Assets (TTM)7.17%55.87%
Net Profit Margin (TTM)15.57%50.03%
Operating Profit Margin (TTM)17.73%67.89%
Gross Profit Margin (TTM)79.41%87.88%

Financial Strength

Current Ratio (MRQ)

TTD

1.71

Media Industry

Max
2.97
Q3
1.79
Median
1.39
Q1
0.92
Min
0.24

TTD’s Current Ratio of 1.71 aligns with the median group of the Media industry, indicating that its short-term liquidity is in line with its sector peers.

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.

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

Debt-to-Equity Ratio (MRQ)

TTD

0.03

Media Industry

Max
2.02
Q3
1.06
Median
0.58
Q1
0.31
Min
0.00

Falling into the lower quartile for the Media industry, TTD’s Debt-to-Equity Ratio of 0.03 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
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.

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

Interest Coverage Ratio (TTM)

TTD

44.57

Media Industry

Max
44.57
Q3
23.07
Median
4.52
Q1
2.14
Min
-10.82

TTD’s Interest Coverage Ratio of 44.57 is in the upper quartile for the Media industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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.

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

Financial Strength at a Glance

SymbolTTDVRSN
Current Ratio (MRQ)1.710.54
Quick Ratio (MRQ)1.680.50
Debt-to-Equity Ratio (MRQ)0.031.07
Interest Coverage Ratio (TTM)44.5727.96

Growth

Revenue Growth

TTD 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

TTD 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)

TTD

0.00%

Media Industry

Max
7.76%
Q3
4.16%
Median
1.67%
Q1
0.00%
Min
0.00%

TTD 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.

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.

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

Dividend Payout Ratio (TTM)

TTD

0.00%

Media Industry

Max
165.03%
Q3
96.17%
Median
45.64%
Q1
14.80%
Min
0.00%

TTD 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.

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.

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

Dividend at a Glance

SymbolTTDVRSN
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

TTD

61.22

Media Industry

Max
49.10
Q3
35.07
Median
17.34
Q1
10.39
Min
5.81

At 61.22, TTD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Media industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

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

Price-to-Sales Ratio (TTM)

TTD

9.53

Media Industry

Max
3.23
Q3
1.85
Median
1.05
Q1
0.78
Min
0.22

With a P/S Ratio of 9.53, TTD trades at a valuation that eclipses even the highest in the Media industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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.

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

Price-to-Book Ratio (MRQ)

TTD

13.12

Media Industry

Max
4.30
Q3
2.57
Median
1.83
Q1
1.19
Min
0.51

At 13.12, TTD’s P/B Ratio is at an extreme premium to the Media industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

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

Valuation at a Glance

SymbolTTDVRSN
Price-to-Earnings Ratio (TTM)61.2231.73
Price-to-Sales Ratio (TTM)9.5315.88
Price-to-Book Ratio (MRQ)13.1211.17
Price-to-Free Cash Flow Ratio (TTM)34.2526.71