Oracle Corporation and VeriSign, Inc. are two prominent players in the software infrastructure industry, each shaping critical aspects of enterprise IT and internet security. Oracle’s vast cloud and database solutions contrast with VeriSign’s specialized domain name registry and internet infrastructure services. Their market overlap and distinct innovation strategies make them ideal candidates for comparison. This article will help you identify which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Oracle Corporation and VeriSign, Inc. by providing an overview of these two companies and their main differences.
Oracle Corporation Overview
Oracle Corporation focuses on delivering enterprise IT solutions worldwide, including cloud software applications such as ERP, supply chain management, and human capital management. It also offers infrastructure technologies like Oracle Database, Java, and cloud computing services. Founded in 1977 and headquartered in Austin, Texas, Oracle operates across various industries, government agencies, and educational institutions with a large global workforce of 159K employees.
VeriSign, Inc. Overview
VeriSign, Inc. provides domain name registry services and internet infrastructure critical to global internet navigation and security. It manages key domains like .com and .net, operates root zone and internet root servers, and supports distributed networking and data integrity services. Founded in 1995 and based in Reston, Virginia, VeriSign employs around 929 people and focuses on maintaining stability and resiliency for internet infrastructure.
Key similarities and differences
Both companies belong to the technology sector and operate in software infrastructure, but Oracle offers a broad portfolio of cloud applications, databases, and hardware solutions, serving diverse enterprise needs. VeriSign specializes in domain registry and internet infrastructure services, focusing on internet security and domain management. Oracle has a significantly larger workforce and market capitalization compared to VeriSign, reflecting their scale and market reach differences.
Income Statement Comparison
The table below presents a factual comparison of key income statement metrics for Oracle Corporation and VeriSign, Inc. for their most recent fiscal years.
| Metric | Oracle Corporation | VeriSign, Inc. |
|---|---|---|
| Market Cap | 549B | 23.1B |
| Revenue | 57.4B | 1.56B |
| EBITDA | 23.9B | 1.13B |
| EBIT | 17.7B | 1.10B |
| Net Income | 12.4B | 786M |
| EPS | 4.46 | 8.01 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Oracle Corporation
Oracle’s revenue demonstrated a steady upward trend, growing from $40.5B in 2021 to $57.4B in 2025, an overall increase of 41.8%. Net income, however, showed volatility, peaking in 2021 at $13.7B and declining to $12.4B in 2025, reflecting a 9.5% drop over the period. Margins remained largely favorable, with a gross margin of 70.5% and net margin of 21.7% in 2025. The latest year saw an 8.4% revenue increase and a 9.7% net margin improvement, indicating solid operational performance.
VeriSign, Inc.
VeriSign’s revenue rose moderately from $1.27B in 2020 to $1.56B in 2024, marking a 23.1% growth. Net income fluctuated, declining slightly overall by 3.6%, with $815M in 2020 and $786M in 2024. The company maintained strong margins, including an 87.7% gross margin and a 50.5% net margin in 2024. The most recent year exhibited a modest 4.3% revenue growth but a 7.9% decrease in net margin, suggesting some margin pressure despite steady top-line expansion.
Which one has the stronger fundamentals?
Oracle shows robust revenue growth and consistently favorable margins, with recent improvements in net margin and earnings per share, though net income declined overall. VeriSign maintains higher margins but experienced slower revenue growth and a recent net margin contraction. Both companies have favorable income statement evaluations, but Oracle’s larger scale and stronger margin improvements in the latest year indicate relatively stronger fundamentals based on the data provided.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Oracle Corporation and VeriSign, Inc., based on their most recent fiscal year data.
| Ratios | Oracle Corporation (2025) | VeriSign, Inc. (2024) |
|---|---|---|
| ROE | 60.8% | -40.1% |
| ROIC | 10.9% | 451.0% |
| P/E | 37.1 | 25.8 |
| P/B | 22.6 | -10.4 |
| Current Ratio | 0.75 | 0.43 |
| Quick Ratio | 0.75 | 0.43 |
| D/E (Debt to Equity) | 5.09 | -0.92 |
| Debt-to-Assets | 61.8% | 128.1% |
| Interest Coverage | 4.94 | 14.05 |
| Asset Turnover | 0.34 | 1.11 |
| Fixed Asset Turnover | 1.32 | 6.66 |
| Payout ratio | 38.1% | 0% |
| Dividend yield | 1.03% | 0% |
Interpretation of the Ratios
Oracle Corporation
Oracle shows strong profitability metrics with a net margin of 21.68% and a robust return on equity at 60.84%, indicating efficient equity use. However, several ratios like a low current ratio of 0.75 and high debt-to-equity of 5.09 raise liquidity and leverage concerns. Oracle pays dividends with a 1.03% yield, supported by stable payout coverage, though caution is warranted due to weaker liquidity.
VeriSign, Inc.
VeriSign demonstrates favorable operational efficiency and profitability, including a high net margin of 50.45% and strong return on invested capital at 451%. Despite this, the company reports negative return on equity and a weak current ratio at 0.43, signaling potential financial stress. VeriSign does not pay dividends, likely reflecting reinvestment priorities and cautious capital allocation.
Which one has the best ratios?
VeriSign’s ratios are generally more favorable, especially in profitability and efficiency, despite liquidity weaknesses. Oracle’s strong profitability contrasts with notable leverage and liquidity risks. Overall, VeriSign’s higher proportion of favorable ratios suggests better financial health, though both companies exhibit trade-offs that investors should monitor carefully.
Strategic Positioning
This section compares the strategic positioning of Oracle Corporation and VeriSign, Inc. in terms of market position, key segments, and exposure to technological disruption:
Oracle Corporation
- Large market cap of 549B facing high competitive pressure in software infrastructure.
- Diverse revenue streams: Cloud and License (49B), Hardware (3B), Services (5B) drive growth.
- Exposed to disruption via cloud technologies, autonomous databases, and blockchain innovations.
VeriSign, Inc.
- Smaller market cap of 23B, focused on domain registry with niche competitive environment.
- Concentrated business in domain name registry and internet infrastructure services.
- Limited technological disruption risk due to entrenched internet root server roles.
Oracle Corporation vs VeriSign, Inc. Positioning
Oracle pursues a diversified approach with multiple business lines across cloud, hardware, and services, benefiting from scale but facing complex competitive dynamics. VeriSign’s concentrated focus on domain registry ensures specialized market control but limits diversification.
Which has the best competitive advantage?
VeriSign demonstrates a very favorable moat with strong, growing ROIC indicating durable competitive advantage. Oracle shows a slightly unfavorable moat with declining ROIC, reflecting challenges in sustaining value creation.
Stock Comparison
The stock price movements of Oracle Corporation and VeriSign, Inc. over the past 12 months reveal significant shifts, with Oracle showing strong gains overall but recent declines, while VeriSign maintains a moderate upward trajectory with steadier trading dynamics.
Trend Analysis
Oracle Corporation’s stock exhibited a bullish trend over the past year with a 70.69% price increase, though this growth is decelerating. Recent months show a bearish reversal, declining 27.23%, accompanied by moderate volatility.
VeriSign, Inc. also experienced a bullish trend over the year, rising 26.92%, with decelerating momentum. Its recent trend is slightly positive, up 4.03%, supported by low volatility and stable trading activity.
Comparing both, Oracle delivered the highest market performance overall with a 70.69% increase, surpassing VeriSign’s 26.92%, despite Oracle’s recent short-term price weakness.
Target Prices
The current analyst consensus suggests a positive outlook for Oracle Corporation and VeriSign, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Oracle Corporation | 400 | 175 | 314.08 |
| VeriSign, Inc. | 325 | 325 | 325 |
Analysts foresee Oracle’s stock potentially rising significantly from its current price of 191.09 USD, while VeriSign’s consensus target price of 325 USD also indicates upside from its present 249.47 USD level.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Oracle Corporation and VeriSign, Inc.:
Rating Comparison
Oracle Corporation Rating
- Rating: B, considered very favorable overall
- Discounted Cash Flow Score: Moderate at 3
- ROE Score: Very favorable at 5, indicating efficient equity use
- ROA Score: Favorable at 4, showing effective asset utilization
- Debt To Equity Score: Very unfavorable at 1, indicating high risk
- Overall Score: Moderate at 3
VeriSign, Inc. Rating
- Rating: B-, also very favorable overall
- Discounted Cash Flow Score: Favorable at 4
- ROE Score: Very unfavorable at 1, indicating weak equity returns
- ROA Score: Very favorable at 5, showing strong asset efficiency
- Debt To Equity Score: Very unfavorable at 1, indicating high risk
- Overall Score: Moderate at 2
Which one is the best rated?
Oracle holds a higher overall score (3 vs. 2) and stronger return on equity, while VeriSign scores better in discounted cash flow and return on assets. Both share similar debt risk concerns, making Oracle slightly better rated overall.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Oracle and VeriSign:
Oracle Scores
- Altman Z-Score: 2.43, in the grey zone indicating moderate bankruptcy risk.
- Piotroski Score: 5, reflecting average financial strength.
VeriSign Scores
- Altman Z-Score: -4.67, in the distress zone indicating high bankruptcy risk.
- Piotroski Score: 8, reflecting very strong financial strength.
Which company has the best scores?
VeriSign shows a higher Piotroski Score indicating strong financial health but a poor Altman Z-Score signaling bankruptcy risk. Oracle has a moderate Altman Z-Score and average Piotroski Score, suggesting more balanced financial stability.
Grades Comparison
The following is a comparison of the latest reliable grades from recognized financial institutions for Oracle Corporation and VeriSign, Inc.:
Oracle Corporation Grades
This table presents recent grades assigned by established grading companies to Oracle Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Buy | 2026-01-05 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Jefferies | Maintain | Buy | 2026-01-05 |
| Goldman Sachs | Maintain | Neutral | 2025-12-12 |
| Keybanc | Maintain | Overweight | 2025-12-11 |
| UBS | Maintain | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-12-11 |
| JP Morgan | Maintain | Neutral | 2025-12-11 |
| DA Davidson | Maintain | Neutral | 2025-12-11 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-11 |
Oracle demonstrates a consistent pattern of buy and neutral ratings, with multiple institutions maintaining a positive outlook.
VeriSign, Inc. Grades
This table summarizes recent grades assigned by reputable grading companies to VeriSign, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2026-01-06 |
| Baird | Maintain | Outperform | 2025-07-01 |
| Baird | Maintain | Outperform | 2025-04-25 |
| Baird | Maintain | Outperform | 2025-04-01 |
| Citigroup | Maintain | Buy | 2025-02-04 |
| Citigroup | Maintain | Buy | 2025-01-03 |
| Baird | Upgrade | Outperform | 2024-12-09 |
| Baird | Maintain | Neutral | 2024-06-27 |
| Baird | Maintain | Neutral | 2024-04-26 |
| Citigroup | Maintain | Buy | 2024-04-02 |
VeriSign shows a trend towards outperform and buy ratings, with an upgrade noted from Baird in late 2024.
Which company has the best grades?
Both Oracle and VeriSign have consensus ratings of “Buy,” but Oracle has a greater number of buy ratings and a broader range of institutional support. VeriSign’s grades lean more towards outperform and buy, with fewer total ratings. This suggests Oracle has a stronger and more consistent endorsement from analysts, potentially offering investors more confidence in the stock’s outlook.
Strengths and Weaknesses
The table below summarizes the key strengths and weaknesses of Oracle Corporation (ORCL) and VeriSign, Inc. (VRSN) based on their recent financial and market performance indicators.
| Criterion | Oracle Corporation (ORCL) | VeriSign, Inc. (VRSN) |
|---|---|---|
| Diversification | Strong diversification with Cloud & License ($49.2B), Services ($5.2B), Hardware ($2.9B) in 2025 | Primarily focused on domain name services and internet infrastructure, less diversified |
| Profitability | Moderate net margin (21.7%), ROIC 10.9%, but declining profitability trend | Very high net margin (50.5%), extremely high ROIC (451%), growing profitability trend |
| Innovation | Moderate innovation with declining economic moat; slight value erosion noted | Strong innovation and durable competitive advantage with very favorable economic moat |
| Global presence | Large global footprint with extensive enterprise software reach | Global leader in domain name registry, but narrower market focus |
| Market Share | Significant market share in enterprise software and cloud markets | Dominant market share in domain name services |
Key takeaways: VeriSign exhibits stronger profitability and a durable competitive advantage, suggesting better value creation and innovation momentum. Oracle offers broader diversification but faces challenges with declining returns and profitability, warranting caution.
Risk Analysis
Below is a comparison table highlighting key risks for Oracle Corporation and VeriSign, Inc. based on the most recent financial data and market environment in 2026:
| Metric | Oracle Corporation (ORCL) | VeriSign, Inc. (VRSN) |
|---|---|---|
| Market Risk | High beta (1.65), volatile price range | Lower beta (0.77), more stable price range |
| Debt level | High debt-to-equity (5.09), 61.8% debt to assets | Negative debt-to-equity (-0.92), but 128% debt to assets |
| Regulatory Risk | Moderate; operates globally with complex compliance | High; controls critical internet infrastructure with regulatory scrutiny |
| Operational Risk | Large workforce (159K), complex cloud and hardware operations | Smaller workforce (929), specialized domain registry services |
| Environmental Risk | Moderate; data centers and hardware production impact | Low; mainly digital infrastructure |
| Geopolitical Risk | Moderate; global presence exposes to trade tensions | Moderate; internet infrastructure sensitive to geopolitical stability |
Oracle’s most significant risks are its high leverage and operational complexity, which may affect liquidity and agility amid market fluctuations. VeriSign faces critical regulatory and geopolitical risks due to its monopoly on domain registry services, despite a strong balance sheet and superior profitability metrics. Both require cautious monitoring of debt management and regulatory developments to mitigate downside risks.
Which Stock to Choose?
Oracle Corporation (ORCL) shows a favorable income evolution with 8.38% revenue growth in 2025 and strong profitability metrics like a 21.68% net margin and 60.84% ROE. However, it carries high debt levels, reflected in an unfavorable debt-to-equity ratio and current ratio below 1, with an overall rating of Very Favorable (B). Its economic moat is slightly unfavorable due to declining ROIC below WACC.
VeriSign, Inc. (VRSN) presents a favorable income statement with a 4.31% revenue growth in 2024, an impressive 50.45% net margin, and a very favorable ROIC well above WACC, indicating value creation and a durable competitive advantage. Despite unfavorable equity returns and liquidity ratios, its overall rating remains Very Favorable (B-), supported by a very strong Piotroski score but a distress zone Altman Z-Score.
For investors, the choice might depend on risk tolerance and investment style: those seeking companies with a durable moat and strong value creation might find VeriSign appealing, while investors prioritizing higher ROE and a larger market presence might view Oracle as a favorable option. Both stocks show favorable income statements but differ in financial stability and moat durability, which could influence investor preferences.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Oracle Corporation and VeriSign, Inc. to enhance your investment decisions:
