AKAM vs. HPE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AKAM and HPE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
HPE’s market capitalization of 28.00 billion USD is significantly greater than AKAM’s 11.31 billion USD, highlighting its more substantial market valuation.
HPE carries a higher beta at 1.33, indicating it’s more sensitive to market moves, while AKAM (beta: 0.77) exhibits greater stability.
Symbol | AKAM | HPE |
---|---|---|
Company Name | Akamai Technologies, Inc. | Hewlett Packard Enterprise Company |
Country | US | US |
Sector | Technology | Technology |
Industry | Software - Infrastructure | Communication Equipment |
CEO | F. Thomson Leighton | Antonio Fabio Neri |
Price | 79.48 USD | 21.34 USD |
Market Cap | 11.31 billion USD | 28.00 billion USD |
Beta | 0.77 | 1.33 |
Exchange | NASDAQ | NYSE |
IPO Date | October 29, 1999 | October 19, 2015 |
ADR | No | No |
Historical Performance
This chart compares the performance of AKAM and HPE 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.
HPE
5.94%
Communication Equipment Industry
- Max
- 30.07%
- Q3
- 8.07%
- Median
- 1.84%
- Q1
- -11.93%
- Min
- -31.65%
HPE’s Return on Equity of 5.94% is on par with the norm for the Communication Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
HPE
3.15%
Communication Equipment Industry
- Max
- 11.59%
- Q3
- 6.61%
- Median
- 2.97%
- Q1
- -2.58%
- Min
- -13.18%
HPE’s Return on Invested Capital of 3.15% is in line with the norm for the Communication Equipment industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
HPE
4.51%
Communication Equipment Industry
- Max
- 23.65%
- Q3
- 9.21%
- Median
- 2.46%
- Q1
- -8.56%
- Min
- -29.87%
HPE’s Net Profit Margin of 4.51% is aligned with the median group of its peers in the Communication Equipment 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.
HPE
5.79%
Communication Equipment Industry
- Max
- 30.72%
- Q3
- 11.64%
- Median
- 5.79%
- Q1
- -2.28%
- Min
- -18.20%
HPE’s Operating Profit Margin of 5.79% is around the midpoint for the Communication Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
Symbol | AKAM | HPE |
---|---|---|
Return on Equity (TTM) | 9.52% | 5.94% |
Return on Assets (TTM) | 4.53% | 2.10% |
Return on Invested Capital (TTM) | 4.40% | 3.15% |
Net Profit Margin (TTM) | 11.26% | 4.51% |
Operating Profit Margin (TTM) | 12.97% | 5.79% |
Gross Profit Margin (TTM) | 59.07% | 23.18% |
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.
HPE
1.29
Communication Equipment Industry
- Max
- 3.40
- Q3
- 2.59
- Median
- 1.62
- Q1
- 1.32
- Min
- 0.86
HPE’s Current Ratio of 1.29 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
HPE
0.73
Communication Equipment Industry
- Max
- 1.82
- Q3
- 1.00
- Median
- 0.53
- Q1
- 0.20
- Min
- 0.02
HPE’s Debt-to-Equity Ratio of 0.73 is typical for the Communication Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
HPE
8.98
Communication Equipment Industry
- Max
- 16.12
- Q3
- 9.22
- Median
- 2.52
- Q1
- -0.75
- Min
- -12.07
HPE’s Interest Coverage Ratio of 8.98 is positioned comfortably within the norm for the Communication Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
Symbol | AKAM | HPE |
---|---|---|
Current Ratio (TTM) | 1.18 | 1.29 |
Quick Ratio (TTM) | 1.18 | 0.96 |
Debt-to-Equity Ratio (TTM) | 1.01 | 0.73 |
Debt-to-Asset Ratio (TTM) | 0.46 | 0.26 |
Net Debt-to-EBITDA Ratio (TTM) | 2.78 | 2.38 |
Interest Coverage Ratio (TTM) | 17.98 | 8.98 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AKAM and HPE. 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.
HPE
2.44%
Communication Equipment Industry
- Max
- 4.72%
- Q3
- 0.38%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.44%, HPE offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.
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.
HPE
47.41%
Communication Equipment Industry
- Max
- 91.96%
- Q3
- 26.44%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
HPE’s Dividend Payout Ratio of 47.41% is in the upper quartile for the Communication Equipment 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 | HPE |
---|---|---|
Dividend Yield (TTM) | 0.00% | 2.44% |
Dividend Payout Ratio (TTM) | 0.00% | 47.41% |
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.
HPE
19.78
Communication Equipment Industry
- Max
- 44.37
- Q3
- 41.98
- Median
- 30.61
- Q1
- 23.44
- Min
- 2.14
In the lower quartile for the Communication Equipment industry, HPE’s P/E Ratio of 19.78 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
HPE
1.47
Communication Equipment Industry
- Max
- 15.97
- Q3
- 6.99
- Median
- 2.78
- Q1
- 0.66
- Min
- 0.05
The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.
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.
HPE
0.88
Communication Equipment Industry
- Max
- 6.38
- Q3
- 3.88
- Median
- 2.17
- Q1
- 1.15
- Min
- 0.37
In the lower quartile for the Communication Equipment industry, HPE’s P/S Ratio of 0.88 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
HPE
1.18
Communication Equipment Industry
- Max
- 14.42
- Q3
- 7.01
- Median
- 3.09
- Q1
- 1.38
- Min
- 0.41
HPE’s P/B Ratio of 1.18 is in the lower quartile for the Communication Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
Symbol | AKAM | HPE |
---|---|---|
Price-to-Earnings Ratio (P/E, TTM) | 26.17 | 19.78 |
Forward PEG Ratio (TTM) | 3.08 | 1.47 |
Price-to-Sales Ratio (P/S, TTM) | 2.81 | 0.88 |
Price-to-Book Ratio (P/B, TTM) | 2.58 | 1.18 |
Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 14.33 | 23.69 |
EV-to-EBITDA (TTM) | 11.70 | 12.88 |
EV-to-Sales (TTM) | 3.69 | 1.09 |