Head to Head Review: Tyler Technologies (NYSE:TYL) vs. VeriSign (NASDAQ:VRSN)

Tyler Technologies (NYSE:TYL) and VeriSign (NASDAQ:VRSN) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Institutional and Insider Ownership

93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 92.9% of VeriSign shares are held by institutional investors. 1.1% of Tyler Technologies shares are held by company insiders. Comparatively, 0.8% of VeriSign shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tyler Technologies and VeriSign”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tyler Technologies	$2.14 billion	11.21	$263.03 million	$6.64	83.66
VeriSign	$1.56 billion	18.44	$785.70 million	$8.18	37.38

VeriSign has lower revenue, but higher earnings than Tyler Technologies. VeriSign is trading at a lower price-to-earnings ratio than Tyler Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	13.23%	10.29%	6.78%
VeriSign	50.05%	-41.12%	55.60%

Analyst Ratings

This is a summary of current ratings and price targets for Tyler Technologies and VeriSign, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	0	3	8	0	2.73
VeriSign	0	0	2	1	3.33

Tyler Technologies currently has a consensus target price of $685.09, suggesting a potential upside of 23.32%. VeriSign has a consensus target price of $277.50, suggesting a potential downside of 9.25%. Given Tyler Technologies’ higher probable upside, analysts clearly believe Tyler Technologies is more favorable than VeriSign.

Risk and Volatility

Tyler Technologies has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, VeriSign has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Summary

Tyler Technologies beats VeriSign on 8 of the 15 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

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.