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AKAM vs. IBM: Akamai vs. IBM Stock Comparison

How do Akamai (AKAM) and IBM (IBM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Akamai (AKAM) and IBM (IBM) both belong to the IT Services industry, though AKAM is classified under Internet Services & Infrastructure while IBM falls under IT Consulting & Other Services.

Company profile comparison for Akamai (AKAM) and IBM (IBM)
Profile ItemAKAMIBM
NameAkamai Technologies, Inc.International Business Machines Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesIT Services
GICS Sub-IndustryInternet Services & InfrastructureIT Consulting & Other Services
Market Capitalization11.94 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateOctober 29, 1999January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AKAM
IBM
GSPC
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Akamai (AKAM) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Akamai (AKAM) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Akamai (AKAM) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
Total Return (1Y)-2.77%-16.98%
Total Return (3Y, Annualized)-9.48%22.40%
Total Return (5Y, Annualized)-5.72%19.64%

Risk Profile

Drawdown History

AKAM
IBM
GSPC
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Akamai (AKAM) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Akamai (AKAM) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
Volatility (1Y, Annualized)62.11%48.48%
Beta (5Y)0.690.79
Max Drawdown (5Y)-51.69%-37.50%
Avg. Volume (3M)4.75M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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AKAM and IBM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
Sharpe Ratio (1Y)-0.11-0.44
Sortino Ratio (1Y)-0.17-0.56

Profitability

ROE (TTM)

IBM (IBM) at 34.77% sits in the top ROE quartile, while Akamai (AKAM) at 7.85% is closer to the peer norm — stronger capital efficiency for IBM.

AKAM

Software & Services industry group

7.85%

Max
53.85%
Q3
17.90%
AKAM
7.85%
Median
6.59%
Q1
-9.59%
Min
-50.52%

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Akamai (AKAM) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Akamai (AKAM) at 8.84%, which keeps about the industry-typical share.

AKAM

Software & Services industry group

8.84%

Max
41.17%
Q3
15.28%
AKAM
8.84%
Median
4.63%
Q1
-5.42%
Min
-33.17%

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Akamai (AKAM) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Akamai (AKAM) at 9.88% and IBM (IBM) at 16.97% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

AKAM

Software & Services industry group

9.88%

Max
46.89%
Q3
17.64%
AKAM
9.88%
Median
8.73%
Q1
-2.13%
Min
-30.45%

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Akamai (AKAM) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
ROE (TTM)7.85%34.77%
ROA (TTM)2.18%5.33%
Net Margin (TTM)8.84%15.99%
Operating Margin (TTM)9.88%16.97%
Gross Margin (TTM)56.39%57.97%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Akamai (AKAM) at 5.44% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Akamai (AKAM) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Akamai (AKAM) at -6.12% is closer to the peer norm — faster per-share earnings growth for IBM.

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Akamai (AKAM) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
Revenue Growth (YoY)5.44%7.62%
Revenue Growth (3Y CAGR)5.18%3.72%
EPS Growth (YoY)-6.12%73.72%
EPS Growth (3Y CAGR)-1.98%83.76%

Financial Strength

Current Ratio (MRQ)

Akamai (AKAM) at 2.13 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

AKAM

Software & Services industry group

2.13

Max
5.11
Q3
2.77
AKAM
2.13
Median
1.67
Q1
1.01
Min
0.03

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03
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Akamai (AKAM) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Akamai (AKAM) at 1.84 and IBM (IBM) at 1.85 lean more heavily on debt funding than most peers, landing in the higher-leverage quartile of their industries.

AKAM

Software & Services industry group

1.84

Max
2.52
AKAM
1.84
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
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Akamai (AKAM) vs. IBM (IBM): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
Current Ratio (MRQ)2.130.86
Debt / Equity (MRQ)1.841.85
Net Debt / EBITDA5.783.37

Dividends

Dividend Yield (TTM)

Akamai (AKAM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.

AKAM

Software & Services industry group

0.00%

AKAM
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Akamai (AKAM) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Akamai (AKAM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 57.51%, ranking against industry peers normally.

AKAM

Software & Services industry group

0.00%

AKAM
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Akamai (AKAM) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
Dividend Yield (TTM)0.00%2.73%
Dividend Payout Ratio (TTM)0.00%57.51%

Valuation

P/E Ratio (TTM)

Both Akamai (AKAM) at 32.33 and IBM (IBM) at 20.90 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AKAM

Software & Services industry group

32.33

Max
112.94
Q3
60.32
Median
32.91
AKAM
32.33
Q1
18.77
Min
6.69

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69
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Akamai (AKAM) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Akamai (AKAM) at 2.72 and IBM (IBM) at 3.31 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AKAM

Software & Services industry group

2.72

Max
17.91
Q3
8.78
Median
4.25
AKAM
2.72
Q1
2.23
Min
0.02

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02
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Akamai (AKAM) vs. IBM (IBM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Akamai (AKAM) at 2.32 and IBM (IBM) at 6.52 are valued close to their industries’ norm against book — neither stands out from peers.

AKAM

Software & Services industry group

2.32

Max
16.63
Q3
8.50
Median
4.30
AKAM
2.32
Q1
1.92
Min
-3.90

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90
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Akamai (AKAM) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Akamai (AKAM) and IBM (IBM)
MetricAKAMIBM
P/E Ratio (TTM)32.3320.90
P/S Ratio (TTM)2.723.31
P/B Ratio (MRQ)2.326.52
Free Cash Flow Yield (TTM)1.51%5.34%