In today’s rapidly evolving technology landscape, VeriSign, Inc. (VRSN) and Rubrik, Inc. (RBRK) stand out as influential players in the software infrastructure sector. VeriSign is a seasoned leader in internet domain registry and security services, while Rubrik focuses on innovative data protection and cyber recovery solutions. Both companies address critical aspects of digital infrastructure, making their comparison essential for investors seeking growth and stability. Let’s explore which company presents the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between VeriSign and Rubrik by providing an overview of these two companies and their main differences.
VeriSign Overview
VeriSign, Inc. provides domain name registry services and internet infrastructure that supports global e-commerce by maintaining stability and security for recognized domain names. It operates critical internet root servers and authoritative resolution for .com and .net domains. Founded in 1995 and headquartered in Reston, Virginia, VeriSign is a key player in internet infrastructure with a market cap of $23.1B.
Rubrik Overview
Rubrik, Inc. offers data security solutions including enterprise, cloud, and SaaS data protection along with cyber recovery and threat analytics. Serving diverse sectors such as finance, healthcare, and technology, Rubrik was incorporated in 2013 and is based in Palo Alto, California. It has a market cap of $13.4B and focuses on comprehensive data security services worldwide.
Key similarities and differences
Both VeriSign and Rubrik operate in the technology sector within software infrastructure, but their core businesses differ. VeriSign specializes in internet infrastructure and domain name registry services, while Rubrik focuses on data security and protection solutions. VeriSign is more established with a larger market cap and fewer employees, whereas Rubrik is a younger company with a broader security product portfolio and a larger workforce.
Income Statement Comparison
This table presents a side-by-side comparison of the most recent fiscal year income statement metrics for VeriSign, Inc. and Rubrik, Inc., providing a snapshot of their financial performance.
| Metric | VeriSign, Inc. (VRSN) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Market Cap | 23.1B | 13.4B |
| Revenue | 1.56B | 887M |
| EBITDA | 1.13B | -1.08B |
| EBIT | 1.10B | -1.11B |
| Net Income | 786M | -1.15B |
| EPS | 8.01 | -7.48 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
VeriSign, Inc.
VeriSign demonstrated steady revenue growth from 1.27B in 2020 to 1.56B in 2024, with gross and EBIT margins remaining robust and favorable, around 87.7% and 70.5% respectively. Net income showed fluctuations, peaking at 815M in 2020 before a slight decline to 786M in 2024. The latest year saw moderate revenue growth of 4.3%, stable operating expenses, but a net margin decrease, signaling margin pressure despite solid top-line expansion.
Rubrik, Inc.
Rubrik experienced rapid revenue growth, increasing from 388M in 2021 to 887M in 2025, reflecting a strong expansion phase. However, the company reported persistent net losses, widening to -1.15B in 2025, with severely negative EBIT and net margins, highlighting ongoing operational challenges and high expenses. Despite favorable gross margin improvement to 70%, recent years show deteriorating profitability metrics and amplified net margin declines.
Which one has the stronger fundamentals?
VeriSign’s income statement reflects stronger fundamentals with consistent profitability, favorable margins, and moderate revenue growth, despite some margin compression. Conversely, Rubrik’s rapid revenue growth is offset by substantial and increasing losses, negative margins, and worsening profitability. Overall, VeriSign presents a more stable and favorable income profile compared to Rubrik’s unfavorable income statement trends.
Financial Ratios Comparison
The table below compares key financial ratios for VeriSign, Inc. (VRSN) and Rubrik, Inc. (RBRK) based on the most recent fiscal year data available.
| Ratios | VeriSign, Inc. (2024) | Rubrik, Inc. (2025) |
|---|---|---|
| ROE | -40.1% | 208.6% |
| ROIC | 4.51% | -234.8% |
| P/E | 25.8 | -9.79 |
| P/B | -10.4 | -20.4 |
| Current Ratio | 0.43 | 1.13 |
| Quick Ratio | 0.43 | 1.13 |
| D/E (Debt-to-Equity) | -0.92 | -0.63 |
| Debt-to-Assets | 128.1% | 24.7% |
| Interest Coverage | 14.1 | -27.5 |
| Asset Turnover | 1.11 | 0.62 |
| Fixed Asset Turnover | 6.66 | 16.7 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
VeriSign, Inc.
VeriSign shows a mixed ratio profile with 57.14% favorable and 42.86% unfavorable metrics. Strong points include a high net margin of 50.45%, robust return on invested capital at 451%, and solid asset turnover. However, concerns arise from a negative return on equity (-40.13%) and weak liquidity indicated by a current ratio of 0.43. VeriSign pays dividends, but its dividend yield is currently zero, suggesting limited shareholder returns from dividends despite stable cash flow coverage.
Rubrik, Inc.
Rubrik also presents 57.14% favorable ratios with fewer unfavorable metrics (28.57%) and some neutral ones. The company has a positive return on equity of 208.55%, favorable price-to-earnings and price-to-book ratios, and good fixed asset turnover. However, its net margin is strongly negative (-130.26%), and interest coverage is unfavorable at -26.84. Rubrik does not pay dividends, reflecting its reinvestment strategy or growth phase focus, which is common for younger tech firms prioritizing expansion over shareholder payouts.
Which one has the best ratios?
Both companies have an equal proportion of favorable ratios, yet VeriSign’s higher profitability and capital efficiency contrast with Rubrik’s heavy losses and weaker interest coverage. VeriSign’s liquidity and equity returns are concerning, while Rubrik’s negative margins and dividend absence indicate early-stage investment dynamics. Overall, the ratio strengths and weaknesses differ, making comparison dependent on investor priorities.
Strategic Positioning
This section compares the strategic positioning of VeriSign and Rubrik, focusing on market position, key segments, and exposure to technological disruption:
VeriSign, Inc.
- Dominant domain registry provider with limited direct competition in core domains.
- Focuses on domain name registry and internet infrastructure services globally.
- Low exposure to disruption due to entrenched internet infrastructure roles.
Rubrik, Inc.
- Data security solutions provider facing competitive pressure in multiple sectors.
- Specializes in enterprise data protection, cloud, and SaaS data security.
- High exposure to rapid innovation and evolving cybersecurity threats.
VeriSign vs Rubrik Positioning
VeriSign operates a concentrated business model centered on domain registry and internet infrastructure, offering stability. Rubrik pursues a diversified approach in data protection across multiple industries, which may increase growth opportunities but also competitive challenges.
Which has the best competitive advantage?
VeriSign demonstrates a very favorable moat with growing ROIC and strong value creation, indicating durable competitive advantage. Rubrik shows a very unfavorable moat with declining ROIC, reflecting challenges in sustaining profitability and competitive positioning.
Stock Comparison
The stock price movements of VeriSign, Inc. (VRSN) and Rubrik, Inc. (RBRK) over the past 12 months reveal significant bullish trends with distinct volatility profiles and recent trading dynamics reflecting varied investor sentiment.
Trend Analysis
VeriSign’s stock price increased by 26.92% over the past year, indicating a bullish trend with decelerating momentum. The stock showed high volatility, with prices ranging from 168.32 to 305.79 and a standard deviation of 40.88.
Rubrik’s stock price rose 76.58% over the same period, also bullish with deceleration. It experienced less volatility than VeriSign, with a standard deviation of 21.4 and price extremes between 28.65 and 97.91.
Comparing both, Rubrik delivered the highest market performance with a 76.58% gain, outperforming VeriSign’s 26.92% increase over the past year.
Target Prices
The current analyst consensus indicates promising upside potential for both VeriSign, Inc. and Rubrik, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| VeriSign, Inc. | 325 | 325 | 325 |
| Rubrik, Inc. | 113 | 105 | 109.33 |
VeriSign’s target price consensus of $325 is significantly above its current price of $249.47, suggesting expected appreciation. Rubrik’s consensus target around $109.33 also implies a substantial upside from its current $67.10 share price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for VeriSign, Inc. and Rubrik, Inc.:
Rating Comparison
VeriSign, Inc. Rating
- Rating: B-, classified as Very Favorable overall.
- Discounted Cash Flow Score: 4, indicating Favorable valuation based on future cash flows.
- ROE Score: 1, considered Very Unfavorable for profit generation efficiency.
- ROA Score: 5, very favorable for asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk profile.
- Overall Score: 2, classified as Moderate overall financial standing.
Rubrik, Inc. Rating
- Rating: C, also classified as Very Favorable.
- Discounted Cash Flow Score: 1, indicating Very Unfavorable valuation.
- ROE Score: 5, considered Very Favorable for profit generation efficiency.
- ROA Score: 1, very unfavorable for asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk profile.
- Overall Score: 2, also classified as Moderate overall financial standing.
Which one is the best rated?
VeriSign holds a higher rating (B-) compared to Rubrik’s C, with a favorable discounted cash flow and asset utilization scores. Rubrik excels in ROE but has very unfavorable scores in valuation and financial risk, making VeriSign overall better rated on provided metrics.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for VeriSign and Rubrik:
VeriSign Scores
- Altman Z-Score: -4.67, indicating financial distress zone.
- Piotroski Score: 8, categorized as very strong financial health.
Rubrik Scores
- Altman Z-Score: 1.41, still in distress zone but higher.
- Piotroski Score: 4, reflecting average financial strength.
Which company has the best scores?
VeriSign shows a much stronger Piotroski Score, suggesting better financial health, while both companies fall in the distress zone for Altman Z-Score, with Rubrik slightly better positioned.
Grades Comparison
The following sections present the recent grading data from reputable financial institutions for VeriSign, Inc. and Rubrik, Inc.:
VeriSign, Inc. Grades
This table lists the recent grades assigned by well-known 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 |
Overall, VeriSign has consistently received predominantly positive grades, mainly “Buy” and “Outperform,” with a few “Neutral” ratings from Baird and JP Morgan.
Rubrik, Inc. Grades
This table shows the recent grades given by reputable grading firms to Rubrik, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-12 |
| Piper Sandler | Maintain | Overweight | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| Piper Sandler | Maintain | Overweight | 2025-12-05 |
| Baird | Maintain | Outperform | 2025-12-05 |
| William Blair | Upgrade | Outperform | 2025-12-05 |
| Keybanc | Maintain | Overweight | 2025-12-05 |
| Wedbush | Maintain | Outperform | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-12-05 |
| Rosenblatt | Maintain | Buy | 2025-12-05 |
Rubrik’s grades show a strong consensus of positive ratings, mainly “Overweight,” “Outperform,” and “Buy,” with no negative or neutral assessments reported.
Which company has the best grades?
Rubrik, Inc. has received stronger and more unanimous positive grades compared to VeriSign, Inc., which shows some neutral ratings. This suggests that investors might view Rubrik as having more robust growth or value prospects, potentially influencing portfolio allocation decisions.
Strengths and Weaknesses
Below is an overview of the strengths and weaknesses of VeriSign, Inc. (VRSN) and Rubrik, Inc. (RBRK) based on recent financial and strategic data.
| Criterion | VeriSign, Inc. (VRSN) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Diversification | Moderate – focused on domain name services | High – diversified revenue streams, strong subscription base (828M in 2025) |
| Profitability | Strong net margin (50.45%), high ROIC (451%) | Negative net margin (-130%), negative ROIC (-235%) but positive ROE (209%) |
| Innovation | Durable competitive advantage, growing ROIC | Declining ROIC, value destroying, but innovation visible in asset turnover (16.67) |
| Global presence | Established with durable competitive moat | Growing global footprint, moderate liquidity ratios (current ratio 1.13) |
| Market Share | High market share in domain services | Emerging player with expanding subscription market |
Key takeaways: VeriSign demonstrates strong profitability and a very favorable economic moat, indicating efficient capital use and market leadership. Rubrik shows mixed signals with strong revenue diversification but suffers from declining profitability and value destruction, suggesting caution despite growth potential.
Risk Analysis
Below is a comparison table of key risks for VeriSign, Inc. (VRSN) and Rubrik, Inc. (RBRK) as of the most recent fiscal years:
| Metric | VeriSign, Inc. (VRSN) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Market Risk | Moderate (Beta 0.77) | Low (Beta 0.28) |
| Debt level | High (Debt to Assets 128%) | Low (Debt to Assets 24.65%) |
| Regulatory Risk | Moderate (Domain registry regulations) | Moderate (Data security compliance) |
| Operational Risk | Moderate (Infrastructure reliance) | Moderate (Rapid growth and integration) |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate (US-based with global services) | Moderate (US-based with global clientele) |
Both companies face regulatory and operational risks typical for technology infrastructure firms. VeriSign’s high debt level and low liquidity ratios elevate financial risk, despite strong profitability. Rubrik’s distressed Altman Z-Score and negative net margin highlight financial stability concerns, despite favorable ROE. Market volatility is higher for VeriSign, but Rubrik’s rapid growth exposes it to operational execution risk. Investors should weigh these factors carefully when considering exposure to these stocks.
Which Stock to Choose?
VeriSign, Inc. (VRSN) shows a favorable income evolution with stable revenue growth of 4.31% in 2024 and a strong gross margin at 87.71%. Financial ratios are mostly favorable, including a high ROIC of 451% and a strong asset turnover, despite an unfavorable ROE of -40.13%. The company carries moderate debt with a net debt to EBITDA of 1.41 and a solid interest coverage ratio of 14.57. Its overall rating is very favorable with a B- grade and a robust economic moat marked by growing ROIC.
Rubrik, Inc. (RBRK) displays rapid revenue growth of 41.19% in 2025 but suffers from an unfavorable net margin of -130.26%. Its financial ratios are mixed, featuring a very favorable ROE of 208.55% contrasted by a negative ROIC of -234.85% and poor interest coverage. The company’s debt levels are low with a net debt to EBITDA of -0.15, yet its rating, while very favorable at a C grade, includes significant weaknesses and a very unfavorable economic moat with declining ROIC.
Investors focused on stable profitability and durable competitive advantage might find VeriSign’s profile more aligned with their goals, given its favorable income statement and moat. Conversely, those prioritizing high growth potential, accepting volatility and financial challenges, may interpret Rubrik’s rapid revenue expansion as a growth opportunity despite its weaker profitability metrics.
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 VeriSign, Inc. and Rubrik, Inc. to enhance your investment decisions:
