Seek Returns logo

AKAM vs. LDOS: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AKAM and LDOS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

LDOS’s market capitalization of 21.18 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 0.65 for LDOS, both stocks show similar sensitivity to overall market movements.

SymbolAKAMLDOS
Company NameAkamai Technologies, Inc.Leidos Holdings, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureInformation Technology Services
CEOF. Thomson LeightonThomas A. Bell
Price79.48 USD164.56 USD
Market Cap11.31 billion USD21.18 billion USD
Beta0.770.65
ExchangeNASDAQNYSE
IPO DateOctober 29, 1999October 17, 2006
ADRNoNo

Historical Performance

This chart compares the performance of AKAM and LDOS 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.

AKAM vs. LDOS: Growth of a $10,000 investment over the past one year.

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.

LDOS

30.06%

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, LDOS’s Return on Equity of 30.06% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AKAM vs. LDOS: A comparison of their ROE against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

14.29%

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, LDOS’s Return on Invested Capital of 14.29% signifies a highly effective use of its capital to generate profits when compared to its peers.

AKAM vs. LDOS: A comparison of their ROIC against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

7.87%

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

LDOS’s Net Profit Margin of 7.87% 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.

AKAM vs. LDOS: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

11.46%

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

LDOS’s Operating Profit Margin of 11.46% is around the midpoint for the Information Technology Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

AKAM vs. LDOS: A comparison of their Operating Margin against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Profitability at a Glance

SymbolAKAMLDOS
Return on Equity (TTM)9.52%30.06%
Return on Assets (TTM)4.53%10.10%
Return on Invested Capital (TTM)4.40%14.29%
Net Profit Margin (TTM)11.26%7.87%
Operating Profit Margin (TTM)12.97%11.46%
Gross Profit Margin (TTM)59.07%17.23%

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.

LDOS

1.54

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

LDOS’s Current Ratio of 1.54 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.

AKAM vs. LDOS: A comparison of their Current Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

1.35

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

LDOS’s leverage is in the upper quartile of the Information Technology Services industry, with a Debt-to-Equity Ratio of 1.35. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AKAM vs. LDOS: A comparison of their D/E Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

10.06

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

LDOS’s Interest Coverage Ratio of 10.06 is in the upper quartile for the Information Technology Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AKAM vs. LDOS: A comparison of their Interest Coverage against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Financial Strength at a Glance

SymbolAKAMLDOS
Current Ratio (TTM)1.181.54
Quick Ratio (TTM)1.181.42
Debt-to-Equity Ratio (TTM)1.011.35
Debt-to-Asset Ratio (TTM)0.460.43
Net Debt-to-EBITDA Ratio (TTM)2.782.19
Interest Coverage Ratio (TTM)17.9810.06

Growth

The following charts compare key year-over-year (YoY) growth metrics for AKAM and LDOS. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AKAM vs. LDOS: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AKAM vs. LDOS: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AKAM vs. LDOS: A comparison of their annual year-over-year 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.

LDOS

0.96%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

LDOS’s Dividend Yield of 0.96% is consistent with its peers in the Information Technology Services industry, providing a dividend return that is standard for its sector.

AKAM vs. LDOS: A comparison of their Dividend Yield against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

15.60%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

LDOS’s Dividend Payout Ratio of 15.60% is within the typical range for the Information Technology Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AKAM vs. LDOS: A comparison of their Payout Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Dividend at a Glance

SymbolAKAMLDOS
Dividend Yield (TTM)0.00%0.96%
Dividend Payout Ratio (TTM)0.00%15.60%

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.

LDOS

16.05

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

LDOS’s P/E Ratio of 16.05 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.

AKAM vs. LDOS: A comparison of their P/E Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

2.43

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

LDOS’s Forward PEG Ratio of 2.43 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AKAM vs. LDOS: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

1.25

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

LDOS’s P/S Ratio of 1.25 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.

AKAM vs. LDOS: A comparison of their P/S Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

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.

LDOS

5.03

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.

AKAM vs. LDOS: A comparison of their P/B Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Valuation at a Glance

SymbolAKAMLDOS
Price-to-Earnings Ratio (P/E, TTM)26.1716.05
Forward PEG Ratio (TTM)3.082.43
Price-to-Sales Ratio (P/S, TTM)2.811.25
Price-to-Book Ratio (P/B, TTM)2.585.03
Price-to-Free Cash Flow Ratio (P/FCF, TTM)14.3316.34
EV-to-EBITDA (TTM)11.7011.69
EV-to-Sales (TTM)3.691.54