Software - Infrastructure
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VRSN vs GDDY
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Infrastructure
VRSN vs GDDY — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Infrastructure | Software - Infrastructure |
| Market Cap | $25.29B | $11.36B |
| Revenue (TTM) | $1.68B | $5.02B |
| Net Income (TTM) | $841M | $870M |
| Gross Margin | 88.3% | 61.8% |
| Operating Margin | 67.9% | 17.6% |
| Forward P/E | 28.5x | 12.2x |
| Total Debt | $1.80B | $3.86B |
| Cash & Equiv. | $308M | $1.08B |
VRSN vs GDDY — 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% |
| GoDaddy Inc. (GDDY) | 100 | 110.3 | +10.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VRSN vs GDDY
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 income & stability and long-term compounding.
- Dividend streak 0 yrs, beta 0.13, yield 0.8%
- 227.4% 10Y total return vs GDDY's 182.0%
- Lower volatility, beta 0.13, current ratio 0.49x
GDDY is the clearest fit if your priority is growth exposure.
- Rev growth 8.3%, EPS growth -3.4%, 3Y rev CAGR 6.6%
- 8.3% revenue growth vs VRSN's 6.4%
- Lower P/E (12.2x vs 28.5x)
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 8.3% revenue growth vs VRSN's 6.4% | |
| Value | Lower P/E (12.2x vs 28.5x) | |
| Quality / Margins | 50.0% margin vs GDDY's 17.3% | |
| Stability / Safety | Beta 0.13 vs GDDY's 0.42 | |
| Dividends | 0.8% yield; the other pay no meaningful dividend | |
| Momentum (1Y) | -1.5% vs GDDY's -53.3% | |
| Efficiency (ROA) | 69.9% ROA vs GDDY's 10.7% |
VRSN vs GDDY — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
VRSN vs GDDY — 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 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
GDDY is the larger business by revenue, generating $5.0B annually — 3.0x VRSN's $1.7B. VRSN is the more profitable business, keeping 50.0% of every revenue dollar as net income compared to GDDY's 17.3%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $5.0B |
| EBITDAEarnings before interest/tax | $1.2B | $1.1B |
| Net IncomeAfter-tax profit | $841M | $870M |
| Free Cash FlowCash after capex | $1.0B | $1.6B |
| Gross MarginGross profit ÷ Revenue | +88.3% | +61.8% |
| Operating MarginEBIT ÷ Revenue | +67.9% | +17.6% |
| Net MarginNet income ÷ Revenue | +50.0% | +17.3% |
| FCF MarginFCF ÷ Revenue | +62.3% | +32.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.6% | +6.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.4% | +6.0% |
Valuation Metrics
GDDY leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 13.7x trailing earnings, GDDY trades at a 56% valuation discount to VRSN's 31.3x P/E. On an enterprise value basis, GDDY's 10.6x EV/EBITDA is more attractive than VRSN's 23.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $25.3B | $11.4B |
| Enterprise ValueMkt cap + debt − cash | $26.8B | $14.1B |
| Trailing P/EPrice ÷ TTM EPS | 31.30x | 13.68x |
| Forward P/EPrice ÷ next-FY EPS est. | 28.46x | 12.24x |
| PEG RatioP/E ÷ EPS growth rate | 6.96x | — |
| EV / EBITDAEnterprise value multiple | 23.24x | 10.58x |
| Price / SalesMarket cap ÷ Revenue | 15.26x | 2.29x |
| Price / BookPrice ÷ Book value/share | — | 53.93x |
| Price / FCFMarket cap ÷ FCF | 23.67x | 7.21x |
Profitability & Efficiency
VRSN leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), VRSN scores 8/9 vs GDDY's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | — | +3.7% |
| ROA (TTM)Return on assets | +69.9% | +10.7% |
| ROICReturn on invested capital | — | +26.2% |
| ROCEReturn on capital employed | — | +21.4% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | — | 17.96x |
| Net DebtTotal debt minus cash | $1.5B | $2.8B |
| Cash & Equiv.Liquid assets | $308M | $1.1B |
| Total DebtShort + long-term debt | $1.8B | $3.9B |
| Interest CoverageEBIT ÷ Interest expense | 22.79x | 10.89x |
Total Returns (Dividends Reinvested)
VRSN leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in VRSN five years ago would be worth $12,492 today (with dividends reinvested), compared to $10,494 for GDDY. Over the past 12 months, VRSN leads with a -1.5% total return vs GDDY's -53.3%. The 3-year compound annual growth rate (CAGR) favors VRSN at 8.2% vs GDDY's 6.7% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +15.0% | -28.1% |
| 1-Year ReturnPast 12 months | -1.5% | -53.3% |
| 3-Year ReturnCumulative with dividends | +26.8% | +21.6% |
| 5-Year ReturnCumulative with dividends | +24.9% | +4.9% |
| 10-Year ReturnCumulative with dividends | +227.4% | +182.0% |
| CAGR (3Y)Annualised 3-year return | +8.2% | +6.7% |
Risk & Volatility
VRSN leads this category, winning 2 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 GDDY's 0.42 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VRSN currently trades 88.8% from its 52-week high vs GDDY's 44.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.13x | 0.42x |
| 52-Week HighHighest price in past year | $310.60 | $190.50 |
| 52-Week LowLowest price in past year | $208.86 | $73.06 |
| % of 52W HighCurrent price vs 52-week peak | +88.8% | +44.7% |
| RSI (14)Momentum oscillator 0–100 | 60.5 | 55.4 |
| Avg Volume (50D)Average daily shares traded | 783K | 2.3M |
Analyst Outlook
GDDY leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates VRSN as "Buy" and GDDY as "Buy". Consensus price targets imply 33.0% upside for GDDY (target: $113) vs 28.7% for VRSN (target: $355). VRSN is the only dividend payer here at 0.84% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $355.00 | $113.29 |
| # AnalystsCovering analysts | 14 | 38 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $2.32 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.5% | +14.1% |
VRSN leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). GDDY leads in 2 (Valuation Metrics, Analyst Outlook).
VRSN vs GDDY: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is VRSN or GDDY a better buy right now?
For growth investors, GoDaddy Inc.
(GDDY) is the stronger pick with 8. 3% revenue growth year-over-year, versus 6. 4% for VeriSign, Inc. (VRSN). GoDaddy Inc. (GDDY) offers the better valuation at 13. 7x trailing P/E (12. 2x 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 GDDY?
On trailing P/E, GoDaddy Inc.
(GDDY) is the cheapest at 13. 7x versus VeriSign, Inc. at 31. 3x. On forward P/E, GoDaddy Inc. is actually cheaper at 12. 2x.
03Which is the better long-term investment — VRSN or GDDY?
Over the past 5 years, VeriSign, Inc.
(VRSN) delivered a total return of +24. 9%, compared to +4. 9% for GoDaddy Inc. (GDDY). Over 10 years, the gap is even starker: VRSN returned +227. 4% versus GDDY's +182. 0%. 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 GDDY?
By beta (market sensitivity over 5 years), VeriSign, Inc.
(VRSN) is the lower-risk stock at 0. 13β versus GoDaddy Inc. 's 0. 42β — meaning GDDY is approximately 222% more volatile than VRSN relative to the S&P 500.
05Which is growing faster — VRSN or GDDY?
By revenue growth (latest reported year), GoDaddy Inc.
(GDDY) is pulling ahead at 8. 3% versus 6. 4% for VeriSign, Inc. (VRSN). On earnings-per-share growth, the picture is similar: VeriSign, Inc. grew EPS 10. 1% year-over-year, compared to -3. 4% for GoDaddy Inc.. Over a 3-year CAGR, GDDY leads at 6. 6% 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 GDDY?
VeriSign, Inc.
(VRSN) is the more profitable company, earning 49. 8% net margin versus 17. 7% for GoDaddy 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 22. 9% for GDDY. 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 GDDY more undervalued right now?
On forward earnings alone, GoDaddy Inc.
(GDDY) trades at 12. 2x forward P/E versus 28. 5x for VeriSign, Inc. — 16. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GDDY: 33. 0% to $113. 29.
08Which pays a better dividend — VRSN or GDDY?
In this comparison, VRSN (0.
8% yield) pays a dividend. GDDY does not pay a meaningful dividend and should not be held primarily for income.
09Is VRSN or GDDY 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%, GDDY: +182. 0%), 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 GDDY?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: VRSN is a mid-cap quality compounder stock; GDDY is a mid-cap deep-value stock. VRSN pays a dividend while GDDY does not, making them suitable for different income and tax situations. 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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