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

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

Company Profile

AKAM is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolAKAMNTES
Company NameAkamai Technologies, Inc.NetEase, Inc.
CountryUnited StatesChina
GICS SectorInformation TechnologyCommunication Services
GICS IndustryIT ServicesEntertainment
Market Capitalization11.12 billion USD96.75 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateOctober 29, 1999June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of AKAM and NTES 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. NTES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAKAMNTES
5-Day Price Return1.74%0.14%
13-Week Price Return-2.42%14.09%
26-Week Price Return-3.65%47.27%
52-Week Price Return-23.04%45.38%
Month-to-Date Return2.38%-0.28%
Year-to-Date Return-18.91%69.90%
10-Day Avg. Volume1.46M0.65M
3-Month Avg. Volume1.98M0.79M
3-Month Volatility26.44%29.42%
Beta0.700.69

Profitability

Return on Equity (TTM)

AKAM

9.07%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

AKAM’s Return on Equity of 9.07% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

NTES

24.25%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
Min
-17.95%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AKAM vs. NTES: A comparison of their Return on Equity (TTM) against their respective IT Services and Entertainment industry benchmarks.

Net Profit Margin (TTM)

AKAM

10.40%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

AKAM’s Net Profit Margin of 10.40% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

NTES

31.19%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

AKAM vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

AKAM

12.85%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

AKAM’s Operating Profit Margin of 12.85% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

NTES

31.43%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AKAM vs. NTES: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Entertainment industry benchmarks.

Profitability at a Glance

SymbolAKAMNTES
Return on Equity (TTM)9.07%24.25%
Return on Assets (TTM)4.13%17.31%
Net Profit Margin (TTM)10.40%31.19%
Operating Profit Margin (TTM)12.85%31.43%
Gross Profit Margin (TTM)59.13%63.17%

Financial Strength

Current Ratio (MRQ)

AKAM

2.31

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

AKAM’s Current Ratio of 2.31 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

NTES

3.23

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

AKAM vs. NTES: A comparison of their Current Ratio (MRQ) against their respective IT Services and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AKAM

0.92

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

AKAM’s Debt-to-Equity Ratio of 0.92 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NTES

0.08

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
Min
0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AKAM vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

AKAM

85.36

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

AKAM’s Interest Coverage Ratio of 85.36 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

NTES

161.13

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

AKAM vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolAKAMNTES
Current Ratio (MRQ)2.313.23
Quick Ratio (MRQ)1.983.10
Debt-to-Equity Ratio (MRQ)0.920.08
Interest Coverage Ratio (TTM)85.36161.13

Growth

Revenue Growth

AKAM vs. NTES: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AKAM vs. NTES: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AKAM

0.00%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
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.

NTES

1.87%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.87%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

AKAM vs. NTES: A comparison of their Dividend Yield (TTM) against their respective IT Services and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

AKAM

0.00%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
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.

NTES

36.90%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
Q1
0.00%
Min
0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AKAM vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Dividend at a Glance

SymbolAKAMNTES
Dividend Yield (TTM)0.00%1.87%
Dividend Payout Ratio (TTM)0.00%36.90%

Valuation

Price-to-Earnings Ratio (TTM)

AKAM

26.34

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

AKAM’s P/E Ratio of 26.34 is within the middle range for the IT 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.

NTES

19.73

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 19.73 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AKAM vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

AKAM

2.74

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

AKAM’s P/S Ratio of 2.74 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NTES

6.15

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

NTES’s P/S Ratio of 6.15 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AKAM vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

AKAM

2.61

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

AKAM’s P/B Ratio of 2.61 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NTES

4.06

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

NTES’s P/B Ratio of 4.06 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AKAM vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Entertainment industry benchmarks.

Valuation at a Glance

SymbolAKAMNTES
Price-to-Earnings Ratio (TTM)26.3419.73
Price-to-Sales Ratio (TTM)2.746.15
Price-to-Book Ratio (MRQ)2.614.06
Price-to-Free Cash Flow Ratio (TTM)21.4715.25