Head to Head Survey: VeriSign (VRSN) & PFSweb (PFSW)
VeriSign (NASDAQ: VRSN) and PFSweb (NASDAQ:PFSW) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares VeriSign and PFSweb’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|VeriSign||$1.15 billion||9.40||$747.69 million||$3.67||29.49|
|PFSweb||$282.62 million||0.57||$16.22 million||($0.65)||-12.98|
VeriSign has higher revenue and earnings than PFSweb. PFSweb is trading at a lower price-to-earnings ratio than VeriSign, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for VeriSign and PFSweb, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
VeriSign currently has a consensus price target of $99.50, suggesting a potential downside of 8.06%. PFSweb has a consensus price target of $11.63, suggesting a potential upside of 37.74%. Given PFSweb’s stronger consensus rating and higher probable upside, analysts clearly believe PFSweb is more favorable than VeriSign.
Institutional and Insider Ownership
57.5% of PFSweb shares are held by institutional investors. 0.9% of VeriSign shares are held by insiders. Comparatively, 5.2% of PFSweb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares VeriSign and PFSweb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
VeriSign has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, PFSweb has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
VeriSign beats PFSweb on 7 of the 13 factors compared between the two stocks.
VeriSign, Inc. is a provider of domain name registry services and Internet security. The Company operates through Registry Services and Security Services segment. Registry Services ensure the security, stability and resiliency of Internet infrastructure and services, including the .com and .net domains, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (DDoS) Protection Services and Managed DNS Services. DDoS Protection Services supports online business continuity by providing monitoring and mitigation services against DDoS attacks. Managed DNS Services is a hosting service that delivers DNS resolution for the availability of Web-based systems.
PFSWEB, Inc. is a global provider of omni-channel commerce solutions, including a range of technology, infrastructure and professional services. The Company’s service offerings include Website design, creation and integration, digital agency and marketing, e-commerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting. It operates through two segments: PFSweb, and Business and Retail Connect. PFSweb is a global provider of various infrastructure, technology and digital agency solutions and operates as a service fee business. In the Business and Retail Connect segment, subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. Its solutions support direct-to-consumer (DTC), business-to-business (B2B) and retail sales channels. It markets its solutions as PFSweb’s End2End eCommerce solution.
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