AKAM vs. NET: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AKAM and NET, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NET’s market capitalization of 66.34 billion USD is significantly greater than AKAM’s 11.31 billion USD, highlighting its more substantial market valuation.
NET carries a higher beta at 1.83, indicating it’s more sensitive to market moves, while AKAM (beta: 0.77) exhibits greater stability.
| Symbol | AKAM | NET |
|---|---|---|
| Company Name | Akamai Technologies, Inc. | Cloudflare, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| CEO | F. Thomson Leighton | Matthew Prince |
| Price | 79.48 USD | 191.27 USD |
| Market Cap | 11.31 billion USD | 66.34 billion USD |
| Beta | 0.77 | 1.83 |
| Exchange | NASDAQ | NYSE |
| IPO Date | October 29, 1999 | September 13, 2019 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AKAM and NET 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.
NET
-7.55%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
NET has a negative Return on Equity of -7.55%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
NET
-5.70%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
NET has a negative Return on Invested Capital of -5.70%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
NET
-4.62%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
NET has a negative Net Profit Margin of -4.62%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
NET
-8.66%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
NET has a negative Operating Profit Margin of -8.66%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | AKAM | NET |
|---|---|---|
| Return on Equity (TTM) | 9.52% | -7.55% |
| Return on Assets (TTM) | 4.53% | -2.20% |
| Return on Invested Capital (TTM) | 4.40% | -5.70% |
| Net Profit Margin (TTM) | 11.26% | -4.62% |
| Operating Profit Margin (TTM) | 12.97% | -8.66% |
| Gross Profit Margin (TTM) | 59.07% | 76.88% |
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.
NET
3.20
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
NET’s Current Ratio of 3.20 is in the upper quartile for the Software - Infrastructure industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.
NET
1.04
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
NET’s Debt-to-Equity Ratio of 1.04 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.
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.
NET
-27.68
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
NET has a negative Interest Coverage Ratio of -27.68. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | AKAM | NET |
|---|---|---|
| Current Ratio (TTM) | 1.18 | 3.20 |
| Quick Ratio (TTM) | 1.18 | 3.20 |
| Debt-to-Equity Ratio (TTM) | 1.01 | 1.04 |
| Debt-to-Asset Ratio (TTM) | 0.46 | 0.40 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.78 | 14.36 |
| Interest Coverage Ratio (TTM) | 17.98 | -27.68 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AKAM and NET. 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.
NET
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
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.
NET
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
Dividend at a Glance
| Symbol | AKAM | NET |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
NET
-809.27
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
NET has a negative P/E Ratio of -809.27. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
NET
-27.37
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
NET has a negative Forward PEG Ratio of -27.37. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
NET
37.48
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
With a P/S Ratio of 37.48, NET trades at a valuation that eclipses even the highest in the Software - Infrastructure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
NET
46.38
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.
Valuation at a Glance
| Symbol | AKAM | NET |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 26.17 | -809.27 |
| Forward PEG Ratio (TTM) | 3.08 | -27.37 |
| Price-to-Sales Ratio (P/S, TTM) | 2.81 | 37.48 |
| Price-to-Book Ratio (P/B, TTM) | 2.58 | 46.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 14.33 | 360.20 |
| EV-to-EBITDA (TTM) | 11.70 | 763.72 |
| EV-to-Sales (TTM) | 3.69 | 38.20 |