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Analyzing VeriSign’s Performance in a Competitive Market

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VeriSign and its peers

In this article, we’ll compare VeriSign with its peers:

  • The PE (price-to-earnings) ratios of VeriSign (VRSN), Verizon Communications (VZ), Akamai Technologies (AKAM), and Neustar (NSR) are 29.81x, 19.04x, 39.42x, and 8.25x, respectively.

  • The PS (price-to-sales) ratios of VeriSign, Verizon, Akamai, Godaddy (GDDY), and Neustar are 8.29x, 1.45x, 6.16x, 2.89x, and 1.46x, respectively.

Thus, VeriSign is way ahead of its peers based on PE and PS.

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ETFs that invest in VeriSign

The SPDR MFS Systematic Growth Equity ETF (SYG) invests 3.7% of its holdings in VeriSign. The ETF holds large-cap US stocks that the manager, Massachusetts Financial Services, believes have high growth potential based on fundamental and quantitative analysis.

The First Trust Dow Jones Internet Index Fund (FDN) invests 2.1% of its holdings in VeriSign. The ETF tracks a market-cap-weighted index of the largest and most liquid US Internet companies.

The PowerShares DWA Technology Momentum Portfolio (PTF) invests 2.1% of its holdings in VeriSign. The ETF tracks an index of US tech firms selected and weighted by price momentum.

Comparing VeriSign and its ETFs

Now let’s compare VeriSign with the ETFs that invest in it:

  • The year-to-date price movements of VeriSign, SYG, FDN, and PTF are 32.3%, 6.3%, 16.1%, and 4.9%, respectively.
  • The PE (price-to-earnings) ratios of VeriSign, SYG, FDN, and PTF are 29.81x, 16.17x, 36.30x, and 67.33x, respectively.

These ETFs are way ahead of VeriSign based on PE. However, VeriSign has outperformed its ETFs based on price movement.

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