Seek Returns logo

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

Updated on

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

Company Profile

SymbolTXNVRSN
Company NameTexas Instruments IncorporatedVeriSign, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentIT Services
Market Capitalization182.53 billion USD25.35 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 1, 1972January 30, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of TXN 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.

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

Historical Performance at a Glance

SymbolTXNVRSN
5-Day Price Return3.64%1.72%
13-Week Price Return6.60%-3.92%
26-Week Price Return11.05%18.35%
52-Week Price Return0.05%48.47%
Month-to-Date Return10.89%0.95%
Year-to-Date Return7.07%31.15%
10-Day Avg. Volume6.01M0.91M
3-Month Avg. Volume7.26M0.90M
3-Month Volatility36.45%29.51%
Beta1.030.78

Profitability

Return on Equity (TTM)

TXN

30.10%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TXN’s Return on Equity of 30.10% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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.

TXN vs. VRSN: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Net Profit Margin (TTM)

TXN

30.23%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

A Net Profit Margin of 30.23% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment 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.

TXN vs. VRSN: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Operating Profit Margin (TTM)

TXN

34.89%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

An Operating Profit Margin of 34.89% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment 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.

TXN vs. VRSN: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Profitability at a Glance

SymbolTXNVRSN
Return on Equity (TTM)30.10%113.55%
Return on Assets (TTM)14.45%55.87%
Net Profit Margin (TTM)30.23%50.03%
Operating Profit Margin (TTM)34.89%67.89%
Gross Profit Margin (TTM)58.03%87.88%

Financial Strength

Current Ratio (MRQ)

TXN

5.81

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

TXN’s Current Ratio of 5.81 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.

TXN vs. VRSN: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

TXN

0.86

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

TXN’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.86. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

TXN vs. VRSN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

TXN

11.73

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

TXN’s Interest Coverage Ratio of 11.73 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

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.

TXN vs. VRSN: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolTXNVRSN
Current Ratio (MRQ)5.810.54
Quick Ratio (MRQ)2.930.50
Debt-to-Equity Ratio (MRQ)0.861.07
Interest Coverage Ratio (TTM)11.7327.96

Growth

Revenue Growth

TXN 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

TXN 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)

TXN

2.73%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.73%, TXN offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.

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.

TXN vs. VRSN: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

TXN

97.20%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

TXN’s Dividend Payout Ratio of 97.20% is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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.

TXN vs. VRSN: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Dividend at a Glance

SymbolTXNVRSN
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)97.20%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

TXN

35.59

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

TXN’s P/E Ratio of 35.59 is within the middle range for the Semiconductors & Semiconductor Equipment 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.

TXN vs. VRSN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

TXN

10.76

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

TXN’s P/S Ratio of 10.76 is in the upper echelon for the Semiconductors & Semiconductor Equipment 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

15.88

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.

TXN vs. VRSN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

TXN

11.50

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

TXN’s P/B Ratio of 11.50 is in the upper tier for the Semiconductors & Semiconductor Equipment 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
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.

TXN vs. VRSN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Valuation at a Glance

SymbolTXNVRSN
Price-to-Earnings Ratio (TTM)35.5931.73
Price-to-Sales Ratio (TTM)10.7615.88
Price-to-Book Ratio (MRQ)11.5011.17
Price-to-Free Cash Flow Ratio (TTM)100.9626.71