AKAM vs. CDW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AKAM and CDW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CDW’s market capitalization of 23.98 billion USD is significantly greater than AKAM’s 11.31 billion USD, highlighting its more substantial market valuation.
With betas of 0.77 for AKAM and 0.94 for CDW, both stocks show similar sensitivity to overall market movements.
| Symbol | AKAM | CDW |
|---|---|---|
| Company Name | Akamai Technologies, Inc. | CDW Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Information Technology Services |
| CEO | F. Thomson Leighton | Christine A. Leahy |
| Price | 79.48 USD | 182.13 USD |
| Market Cap | 11.31 billion USD | 23.98 billion USD |
| Beta | 0.77 | 0.94 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | October 29, 1999 | June 27, 2013 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AKAM and CDW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AKAM
9.52%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
AKAM’s Return on Equity of 9.52% is on par with the norm for the Software - Infrastructure industry, indicating its profitability relative to shareholder equity is typical for the sector.
CDW
47.24%
Information Technology Services Industry
- Max
- 47.24%
- Q3
- 23.27%
- Median
- 12.85%
- Q1
- 2.22%
- Min
- -26.63%
In the upper quartile for the Information Technology Services industry, CDW’s Return on Equity of 47.24% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AKAM
4.40%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
AKAM’s Return on Invested Capital of 4.40% is in line with the norm for the Software - Infrastructure industry, reflecting a standard level of efficiency in generating profits from its capital base.
CDW
13.23%
Information Technology Services Industry
- Max
- 28.29%
- Q3
- 13.19%
- Median
- 7.24%
- Q1
- 0.23%
- Min
- -18.82%
In the upper quartile for the Information Technology Services industry, CDW’s Return on Invested Capital of 13.23% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AKAM
11.26%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
AKAM’s Net Profit Margin of 11.26% is aligned with the median group of its peers in the Software - Infrastructure industry. This indicates its ability to convert revenue into profit is typical for the sector.
CDW
5.10%
Information Technology Services Industry
- Max
- 20.47%
- Q3
- 11.62%
- Median
- 5.97%
- Q1
- 1.89%
- Min
- -4.62%
CDW’s Net Profit Margin of 5.10% is aligned with the median group of its peers in the Information Technology Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AKAM
12.97%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
AKAM’s Operating Profit Margin of 12.97% is around the midpoint for the Software - Infrastructure industry, indicating that its efficiency in managing core business operations is typical for the sector.
CDW
7.90%
Information Technology Services Industry
- Max
- 29.42%
- Q3
- 14.75%
- Median
- 8.92%
- Q1
- 2.62%
- Min
- -11.92%
CDW’s Operating Profit Margin of 7.90% is around the midpoint for the Information Technology Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AKAM | CDW |
|---|---|---|
| Return on Equity (TTM) | 9.52% | 47.24% |
| Return on Assets (TTM) | 4.53% | 7.24% |
| Return on Invested Capital (TTM) | 4.40% | 13.23% |
| Net Profit Margin (TTM) | 11.26% | 5.10% |
| Operating Profit Margin (TTM) | 12.97% | 7.90% |
| Gross Profit Margin (TTM) | 59.07% | 21.86% |
Financial Strength
Current Ratio
AKAM
1.18
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
AKAM’s Current Ratio of 1.18 aligns with the median group of the Software - Infrastructure industry, indicating that its short-term liquidity is in line with its sector peers.
CDW
1.32
Information Technology Services Industry
- Max
- 3.41
- Q3
- 2.37
- Median
- 1.58
- Q1
- 1.20
- Min
- 0.00
CDW’s Current Ratio of 1.32 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AKAM
1.01
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
AKAM’s Debt-to-Equity Ratio of 1.01 is typical for the Software - Infrastructure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
CDW
2.58
Information Technology Services Industry
- Max
- 2.63
- Q3
- 1.16
- Median
- 0.48
- Q1
- 0.09
- Min
- 0.01
CDW’s leverage is in the upper quartile of the Information Technology Services industry, with a Debt-to-Equity Ratio of 2.58. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AKAM
17.98
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
AKAM’s Interest Coverage Ratio of 17.98 is in the upper quartile for the Software - Infrastructure industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
CDW
7.65
Information Technology Services Industry
- Max
- 17.52
- Q3
- 10.04
- Median
- 4.66
- Q1
- 0.80
- Min
- -10.50
CDW’s Interest Coverage Ratio of 7.65 is positioned comfortably within the norm for the Information Technology Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AKAM | CDW |
|---|---|---|
| Current Ratio (TTM) | 1.18 | 1.32 |
| Quick Ratio (TTM) | 1.18 | 1.20 |
| Debt-to-Equity Ratio (TTM) | 1.01 | 2.58 |
| Debt-to-Asset Ratio (TTM) | 0.46 | 0.40 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.78 | 2.91 |
| Interest Coverage Ratio (TTM) | 17.98 | 7.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AKAM and CDW. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AKAM
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AKAM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CDW
1.37%
Information Technology Services Industry
- Max
- 16.57%
- Q3
- 1.39%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CDW’s Dividend Yield of 1.37% is consistent with its peers in the Information Technology Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AKAM
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AKAM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CDW
30.52%
Information Technology Services Industry
- Max
- 112.81%
- Q3
- 20.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CDW’s Dividend Payout Ratio of 30.52% is in the upper quartile for the Information Technology Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AKAM | CDW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.37% |
| Dividend Payout Ratio (TTM) | 0.00% | 30.52% |
Valuation
Price-to-Earnings Ratio
AKAM
26.17
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
AKAM’s P/E Ratio of 26.17 is within the middle range for the Software - Infrastructure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
CDW
22.21
Information Technology Services Industry
- Max
- 49.12
- Q3
- 36.91
- Median
- 24.84
- Q1
- 15.88
- Min
- 1.55
CDW’s P/E Ratio of 22.21 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AKAM
3.08
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
AKAM’s Forward PEG Ratio of 3.08 is within the middle range of its peers in the Software - Infrastructure industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
CDW
3.95
Information Technology Services Industry
- Max
- 5.35
- Q3
- 3.79
- Median
- 2.23
- Q1
- 1.19
- Min
- 0.03
A Forward PEG Ratio of 3.95 places CDW in the upper quartile for the Information Technology Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AKAM
2.81
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
AKAM’s P/S Ratio of 2.81 aligns with the market consensus for the Software - Infrastructure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
CDW
1.12
Information Technology Services Industry
- Max
- 8.15
- Q3
- 4.17
- Median
- 2.14
- Q1
- 1.00
- Min
- 0.10
CDW’s P/S Ratio of 1.12 aligns with the market consensus for the Information Technology Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AKAM
2.58
Software - Infrastructure Industry
- Max
- 19.94
- Q3
- 10.91
- Median
- 6.33
- Q1
- 2.95
- Min
- 0.51
The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.
CDW
10.39
Information Technology Services Industry
- Max
- 11.78
- Q3
- 6.14
- Median
- 3.23
- Q1
- 1.97
- Min
- 0.42
The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.
Valuation at a Glance
| Symbol | AKAM | CDW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 26.17 | 22.21 |
| Forward PEG Ratio (TTM) | 3.08 | 3.95 |
| Price-to-Sales Ratio (P/S, TTM) | 2.81 | 1.12 |
| Price-to-Book Ratio (P/B, TTM) | 2.58 | 10.39 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 14.33 | 23.88 |
| EV-to-EBITDA (TTM) | 11.70 | 15.54 |
| EV-to-Sales (TTM) | 3.69 | 1.38 |