VeriSign (NASDAQ:VRSN – Get Free Report) and VNET Group (NASDAQ:VNET – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Earnings & Valuation
This table compares VeriSign and VNET Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VeriSign | $1.66 billion | 15.92 | $825.70 million | $9.22 | 31.67 |
| VNET Group | $1.42 billion | 1.20 | -$36.01 million | ($1.42) | -4.45 |
Risk & Volatility
VeriSign has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, VNET Group has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for VeriSign and VNET Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VeriSign | 0 | 1 | 4 | 1 | 3.00 |
| VNET Group | 1 | 1 | 4 | 0 | 2.50 |
VeriSign currently has a consensus price target of $333.00, suggesting a potential upside of 14.04%. VNET Group has a consensus price target of $16.90, suggesting a potential upside of 167.58%. Given VNET Group’s higher possible upside, analysts plainly believe VNET Group is more favorable than VeriSign.
Institutional & Insider Ownership
92.9% of VeriSign shares are owned by institutional investors. Comparatively, 72.8% of VNET Group shares are owned by institutional investors. 0.6% of VeriSign shares are owned by company insiders. Comparatively, 12.1% of VNET Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares VeriSign and VNET Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VeriSign | 49.76% | -39.20% | 58.32% |
| VNET Group | -22.29% | -36.25% | -4.43% |
Summary
VeriSign beats VNET Group on 11 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 VNET Group
VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.
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