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VRSN vs CSCO
Revenue, margins, valuation, and 5-year total return — side by side.
Communication Equipment
VRSN vs CSCO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Infrastructure | Communication Equipment |
| Market Cap | $25.29B | $362.87B |
| Revenue (TTM) | $1.68B | $59.05B |
| Net Income (TTM) | $841M | $11.08B |
| Gross Margin | 88.3% | 64.4% |
| Operating Margin | 67.9% | 23.0% |
| Forward P/E | 28.5x | 22.1x |
| Total Debt | $1.80B | $29.64B |
| Cash & Equiv. | $308M | $9.47B |
VRSN vs CSCO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| VeriSign, Inc. (VRSN) | 100 | 125.9 | +25.9% |
| Cisco Systems, Inc. (CSCO) | 100 | 191.6 | +91.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VRSN vs CSCO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VRSN carries the broadest edge in this set and is the clearest fit for growth exposure and sleep-well-at-night.
- Rev growth 6.4%, EPS growth 10.1%, 3Y rev CAGR 5.2%
- Lower volatility, beta 0.13, current ratio 0.49x
- 6.4% revenue growth vs CSCO's 5.3%
CSCO is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 15 yrs, beta 0.92, yield 1.8%
- 299.4% 10Y total return vs VRSN's 227.4%
- Beta 0.92, yield 1.8%, current ratio 1.00x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 6.4% revenue growth vs CSCO's 5.3% | |
| Value | Lower P/E (22.1x vs 28.5x) | |
| Quality / Margins | 50.0% margin vs CSCO's 18.8% | |
| Stability / Safety | Beta 0.13 vs CSCO's 0.92 | |
| Dividends | 1.8% yield, 15-year raise streak, vs VRSN's 0.8% | |
| Momentum (1Y) | +57.5% vs VRSN's -1.5% | |
| Efficiency (ROA) | 69.9% ROA vs CSCO's 9.0% |
VRSN vs CSCO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
VRSN vs CSCO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
VRSN leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CSCO is the larger business by revenue, generating $59.1B annually — 35.1x VRSN's $1.7B. VRSN is the more profitable business, keeping 50.0% of every revenue dollar as net income compared to CSCO's 18.8%. On growth, CSCO holds the edge at +9.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $59.1B |
| EBITDAEarnings before interest/tax | $1.2B | $16.1B |
| Net IncomeAfter-tax profit | $841M | $11.1B |
| Free Cash FlowCash after capex | $1.0B | $12.8B |
| Gross MarginGross profit ÷ Revenue | +88.3% | +64.4% |
| Operating MarginEBIT ÷ Revenue | +67.9% | +23.0% |
| Net MarginNet income ÷ Revenue | +50.0% | +18.8% |
| FCF MarginFCF ÷ Revenue | +62.3% | +21.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.6% | +9.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.4% | +29.5% |
Valuation Metrics
VRSN leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 31.3x trailing earnings, VRSN trades at a 13% valuation discount to CSCO's 35.9x P/E. On an enterprise value basis, VRSN's 23.2x EV/EBITDA is more attractive than CSCO's 26.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $25.3B | $362.9B |
| Enterprise ValueMkt cap + debt − cash | $26.8B | $383.0B |
| Trailing P/EPrice ÷ TTM EPS | 31.30x | 35.93x |
| Forward P/EPrice ÷ next-FY EPS est. | 28.46x | 22.05x |
| PEG RatioP/E ÷ EPS growth rate | 6.96x | — |
| EV / EBITDAEnterprise value multiple | 23.24x | 26.20x |
| Price / SalesMarket cap ÷ Revenue | 15.26x | 6.41x |
| Price / BookPrice ÷ Book value/share | — | 7.82x |
| Price / FCFMarket cap ÷ FCF | 23.67x | 27.31x |
Profitability & Efficiency
VRSN leads this category, winning 4 of 4 comparable metrics.
Profitability & Efficiency
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | — | +23.2% |
| ROA (TTM)Return on assets | +69.9% | +9.0% |
| ROICReturn on invested capital | — | +13.0% |
| ROCEReturn on capital employed | — | +13.7% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 8 |
| Debt / EquityFinancial leverage | — | 0.63x |
| Net DebtTotal debt minus cash | $1.5B | $20.2B |
| Cash & Equiv.Liquid assets | $308M | $9.5B |
| Total DebtShort + long-term debt | $1.8B | $29.6B |
| Interest CoverageEBIT ÷ Interest expense | 22.79x | 9.64x |
Total Returns (Dividends Reinvested)
CSCO leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CSCO five years ago would be worth $18,971 today (with dividends reinvested), compared to $12,492 for VRSN. Over the past 12 months, CSCO leads with a +57.5% total return vs VRSN's -1.5%. The 3-year compound annual growth rate (CAGR) favors CSCO at 27.7% vs VRSN's 8.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +15.0% | +21.6% |
| 1-Year ReturnPast 12 months | -1.5% | +57.5% |
| 3-Year ReturnCumulative with dividends | +26.8% | +108.2% |
| 5-Year ReturnCumulative with dividends | +24.9% | +89.7% |
| 10-Year ReturnCumulative with dividends | +227.4% | +299.4% |
| CAGR (3Y)Annualised 3-year return | +8.2% | +27.7% |
Risk & Volatility
Evenly matched — VRSN and CSCO each lead in 1 of 2 comparable metrics.
Risk & Volatility
VRSN is the less volatile stock with a 0.13 beta — it tends to amplify market swings less than CSCO's 0.92 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CSCO currently trades 96.7% from its 52-week high vs VRSN's 88.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.13x | 0.92x |
| 52-Week HighHighest price in past year | $310.60 | $94.72 |
| 52-Week LowLowest price in past year | $208.86 | $58.58 |
| % of 52W HighCurrent price vs 52-week peak | +88.8% | +96.7% |
| RSI (14)Momentum oscillator 0–100 | 60.5 | 74.9 |
| Avg Volume (50D)Average daily shares traded | 783K | 19.0M |
Analyst Outlook
CSCO leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates VRSN as "Buy" and CSCO as "Buy". Consensus price targets imply 28.7% upside for VRSN (target: $355) vs 5.3% for CSCO (target: $97). For income investors, CSCO offers the higher dividend yield at 1.76% vs VRSN's 0.84%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $355.00 | $96.50 |
| # AnalystsCovering analysts | 14 | 73 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | +1.8% |
| Dividend StreakConsecutive years of raises | 0 | 15 |
| Dividend / ShareAnnual DPS | $2.32 | $1.61 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.5% | +2.0% |
VRSN leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). CSCO leads in 2 (Total Returns, Analyst Outlook). 1 tied.
VRSN vs CSCO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is VRSN or CSCO a better buy right now?
For growth investors, VeriSign, Inc.
(VRSN) is the stronger pick with 6. 4% revenue growth year-over-year, versus 5. 3% for Cisco Systems, Inc. (CSCO). VeriSign, Inc. (VRSN) offers the better valuation at 31. 3x trailing P/E (28. 5x forward), making it the more compelling value choice. Analysts rate VeriSign, Inc. (VRSN) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — VRSN or CSCO?
On trailing P/E, VeriSign, Inc.
(VRSN) is the cheapest at 31. 3x versus Cisco Systems, Inc. at 35. 9x. On forward P/E, Cisco Systems, Inc. is actually cheaper at 22. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — VRSN or CSCO?
Over the past 5 years, Cisco Systems, Inc.
(CSCO) delivered a total return of +89. 7%, compared to +24. 9% for VeriSign, Inc. (VRSN). Over 10 years, the gap is even starker: CSCO returned +299. 4% versus VRSN's +227. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — VRSN or CSCO?
By beta (market sensitivity over 5 years), VeriSign, Inc.
(VRSN) is the lower-risk stock at 0. 13β versus Cisco Systems, Inc. 's 0. 92β — meaning CSCO is approximately 602% more volatile than VRSN relative to the S&P 500.
05Which is growing faster — VRSN or CSCO?
By revenue growth (latest reported year), VeriSign, Inc.
(VRSN) is pulling ahead at 6. 4% versus 5. 3% for Cisco Systems, Inc. (CSCO). On earnings-per-share growth, the picture is similar: VeriSign, Inc. grew EPS 10. 1% year-over-year, compared to 0. 4% for Cisco Systems, Inc.. Over a 3-year CAGR, VRSN leads at 5. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — VRSN or CSCO?
VeriSign, Inc.
(VRSN) is the more profitable company, earning 49. 8% net margin versus 18. 0% for Cisco Systems, Inc. — meaning it keeps 49. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VRSN leads at 67. 7% versus 20. 8% for CSCO. At the gross margin level — before operating expenses — VRSN leads at 88. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is VRSN or CSCO more undervalued right now?
On forward earnings alone, Cisco Systems, Inc.
(CSCO) trades at 22. 1x forward P/E versus 28. 5x for VeriSign, Inc. — 6. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VRSN: 28. 7% to $355. 00.
08Which pays a better dividend — VRSN or CSCO?
All stocks in this comparison pay dividends.
Cisco Systems, Inc. (CSCO) offers the highest yield at 1. 8%, versus 0. 8% for VeriSign, Inc. (VRSN).
09Is VRSN or CSCO better for a retirement portfolio?
For long-horizon retirement investors, VeriSign, Inc.
(VRSN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 13), 0. 8% yield, +227. 4% 10Y return). Both have compounded well over 10 years (VRSN: +227. 4%, CSCO: +299. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between VRSN and CSCO?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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