VeriSign (NASDAQ:VRSN – Get Free Report) and Ntt Data (OTC:NTDTY – Get Free Report) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares VeriSign and Ntt Data’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
VeriSign | 50.47% | -43.01% | 51.54% |
Ntt Data | 3.20% | 5.16% | 1.97% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for VeriSign and Ntt Data, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
VeriSign | 0 | 0 | 2 | 1 | 3.33 |
Ntt Data | 0 | 0 | 0 | 1 | 4.00 |
Institutional & Insider Ownership
92.9% of VeriSign shares are owned by institutional investors. 0.8% of VeriSign shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares VeriSign and Ntt Data”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
VeriSign | $1.56 billion | 14.86 | $785.70 million | $8.00 | 30.58 |
Ntt Data | $30.25 billion | 0.77 | $923.70 million | $0.70 | 23.84 |
Ntt Data has higher revenue and earnings than VeriSign. Ntt Data is trading at a lower price-to-earnings ratio than VeriSign, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
VeriSign has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Ntt Data has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Summary
VeriSign beats Ntt Data on 9 of the 14 factors compared between the two stocks.
About VeriSign
VeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It operates directory for .name and .cc; and back-end systems for .edu, domain names. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.
About Ntt Data
NTT DATA Group Corporation provides IT and business services worldwide. It offers cloud, cybersecurity, data and intelligence, salesforce, SAP, ServiceNow, and application development and management, as well as 5G services. The company also provides consulting, industry solutions, business process services, and IT modernization and managed services. It serves automotive, healthcare, life sciences, media, banking, and insurance industries. The company was formerly known as NTT DATA Corporation. NTT DATA Group Corporation was founded in 1988 and is headquartered in Tokyo, Japan. NTT DATA Group Corporation operates as a subsidiary of Nippon Telegraph and Telephone Corporation.
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