Analyzing MicroAlgo (NASDAQ:MLGO) and VeriSign (NASDAQ:VRSN)

VeriSign (NASDAQ:VRSN) and MicroAlgo (NASDAQ:MLGO) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

VeriSign has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, MicroAlgo has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for VeriSign and MicroAlgo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VeriSign	0	1	1	0	2.50
MicroAlgo	0	0	0	0	N/A

VeriSign presently has a consensus target price of $247.00, indicating a potential upside of 22.12%. Given VeriSign’s higher probable upside, equities analysts plainly believe VeriSign is more favorable than MicroAlgo.

Insider and Institutional Ownership

91.0% of VeriSign shares are held by institutional investors. Comparatively, 0.1% of MicroAlgo shares are held by institutional investors. 0.9% of VeriSign shares are held by insiders. Comparatively, 22.7% of MicroAlgo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares VeriSign and MicroAlgo’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VeriSign	$1.42 billion	14.64	$673.80 million	$6.77	29.88
MicroAlgo	$73.61 million	1.40	-$6.96 million	N/A	N/A

VeriSign has higher revenue and earnings than MicroAlgo.

Profitability

This table compares VeriSign and MicroAlgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VeriSign	48.74%	-45.15%	41.26%
MicroAlgo	N/A	-29.07%	-20.69%

Summary

VeriSign beats MicroAlgo on 8 of the 11 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 the 13 internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It also back-end systems for .cc, .gov, .edu, and .name domain names, as well as operates distributed servers, networking, security, and data integrity services. The company was incorporated in 1995 and is headquartered in Reston, Virginia.

About MicroAlgo

MicroAlgo Inc. develops and delivers central processing algorithm solutions to customers in internet advertisement, gaming, and intelligent chip industries in the People's Republic of China and internationally. The company operates through two segments, Central Processing Algorithm Services, and Intelligent Chips and Services. It offers services that includes algorithm optimization, accelerating computing power without the need for hardware upgrades, data processing, and data intelligence services. The company also engages in the resale of intelligent chips and accessories; and provision of software development. MicroAlgo Inc. is headquartered in Shenzhen, the People's Republic of China. MicroAlgo Inc. is a subsidiary of WiMi Hologram Cloud Inc.