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AKAM vs. MSFT: Akamai vs. Microsoft Stock Comparison

How do Akamai (AKAM) and Microsoft (MSFT) 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 Microsoft (MSFT) both fall under the Software & Services industry group, but AKAM is classified in IT Services while MSFT is classified in Software.

Company profile comparison for Akamai (AKAM) and Microsoft (MSFT)
Profile ItemAKAMMSFT
NameAkamai Technologies, Inc.Microsoft Corporation Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryInternet Services & InfrastructureSystems Software
Market Capitalization11.94 billion USD3,940.41 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 29, 1999March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AKAM
MSFT
GSPC
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Akamai (AKAM) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Akamai (AKAM) and Microsoft (MSFT)
MetricAKAMMSFT
Total Return (1Y)-2.77%10.30%
Total Return (3Y, Annualized)-9.48%15.53%
Total Return (5Y, Annualized)-5.72%11.01%

Risk Profile

Drawdown History

AKAM
MSFT
GSPC
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Akamai (AKAM) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Akamai (AKAM) and Microsoft (MSFT)
MetricAKAMMSFT
Volatility (1Y, Annualized)62.11%33.91%
Beta (5Y)0.691.03
Max Drawdown (5Y)-51.69%-37.15%
Avg. Volume (3M)4.75M22.95M

Risk-Adjusted Performance

Risk-Return Positioning

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AKAM and MSFT 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 Microsoft (MSFT)
MetricAKAMMSFT
Sharpe Ratio (1Y)-0.110.18
Sortino Ratio (1Y)-0.170.28

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Akamai (AKAM) at 7.85% is closer to the peer norm — stronger capital efficiency for MSFT.

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%

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Akamai (AKAM) vs. Microsoft (MSFT): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% 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%

MSFT

Software & Services industry group

41.17%

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

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Akamai (AKAM) at 9.88% operates around its industry’s norm.

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%

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Akamai (AKAM) vs. Microsoft (MSFT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Akamai (AKAM) and Microsoft (MSFT)
MetricAKAMMSFT
ROE (TTM)7.85%34.22%
ROA (TTM)2.18%14.41%
Net Margin (TTM)8.84%41.17%
Operating Margin (TTM)9.88%49.76%
Gross Margin (TTM)56.39%67.66%

Growth

Revenue Growth

Microsoft (MSFT) at 17.79% 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. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Akamai (AKAM) at -6.12% and Microsoft (MSFT) at 31.60% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Akamai (AKAM) and Microsoft (MSFT)
MetricAKAMMSFT
Revenue Growth (YoY)5.44%17.79%
Revenue Growth (3Y CAGR)5.18%16.12%
EPS Growth (YoY)-6.12%31.60%
EPS Growth (3Y CAGR)-1.98%22.86%

Financial Strength

Current Ratio (MRQ)

Both Akamai (AKAM) at 2.13 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

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

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03
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Akamai (AKAM) vs. Microsoft (MSFT): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Microsoft (MSFT) at 0.28 carries an industry-typical debt-to-equity mix, while Akamai (AKAM) at 1.84 uses more debt funding than most peers.

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

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00
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Akamai (AKAM) vs. Microsoft (MSFT): 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 Microsoft (MSFT)
MetricAKAMMSFT
Current Ratio (MRQ)2.131.23
Debt / Equity (MRQ)1.840.28
Net Debt / EBITDA5.780.34

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 Microsoft (MSFT) reports a yield of 0.69%, 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%

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Akamai (AKAM) vs. Microsoft (MSFT): 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 Microsoft (MSFT) reports a payout of 19.00%, 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%

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Akamai (AKAM) vs. Microsoft (MSFT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Akamai (AKAM) and Microsoft (MSFT)
MetricAKAMMSFT
Dividend Yield (TTM)0.00%0.69%
Dividend Payout Ratio (TTM)0.00%19.00%

Valuation

P/E Ratio (TTM)

Both Akamai (AKAM) at 32.33 and Microsoft (MSFT) at 27.69 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

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69
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Akamai (AKAM) vs. Microsoft (MSFT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Akamai (AKAM) at 2.72 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.37 sits in the pricier quartile — MSFT costs more per dollar of sales.

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

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Akamai (AKAM) vs. Microsoft (MSFT): 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 Microsoft (MSFT) at 8.38 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

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90
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Akamai (AKAM) vs. Microsoft (MSFT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Akamai (AKAM) and Microsoft (MSFT)
MetricAKAMMSFT
P/E Ratio (TTM)32.3327.69
P/S Ratio (TTM)2.7211.37
P/B Ratio (MRQ)2.328.38
Free Cash Flow Yield (TTM)1.51%0.08%