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AKAM vs. PANW: Akamai vs. Palo Alto Networks Stock Comparison

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

Company profile comparison for Akamai (AKAM) and Palo Alto Networks (PANW)
Profile ItemAKAMPANW
NameAkamai Technologies, Inc.Palo Alto Networks, Inc.
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 USD256.86 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 29, 1999July 20, 2012
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AKAM
PANW
GSPC
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Akamai (AKAM) vs. Palo Alto Networks (PANW), 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 Palo Alto Networks (PANW). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Akamai (AKAM) and Palo Alto Networks (PANW)
MetricAKAMPANW
Total Return (1Y)-2.77%53.99%
Total Return (3Y, Annualized)-9.48%39.16%
Total Return (5Y, Annualized)-5.72%30.80%

Risk Profile

Drawdown History

AKAM
PANW
GSPC
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Akamai (AKAM) vs. Palo Alto Networks (PANW), 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 Palo Alto Networks (PANW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Akamai (AKAM) and Palo Alto Networks (PANW)
MetricAKAMPANW
Volatility (1Y, Annualized)62.11%51.34%
Beta (5Y)0.691.00
Max Drawdown (5Y)-51.69%-36.01%
Avg. Volume (3M)4.75M6.03M

Risk-Adjusted Performance

Risk-Return Positioning

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AKAM and PANW 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 Palo Alto Networks (PANW)
MetricAKAMPANW
Sharpe Ratio (1Y)-0.110.97
Sortino Ratio (1Y)-0.171.49

Profitability

ROE (TTM)

Both Akamai (AKAM) at 7.85% and Palo Alto Networks (PANW) at 1.74% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

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%

PANW

Software & Services industry group

1.74%

Max
53.85%
Q3
17.90%
Median
6.59%
PANW
1.74%
Q1
-9.59%
Min
-50.52%
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Akamai (AKAM) at 8.84% and Palo Alto Networks (PANW) at 2.67% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

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%

PANW

Software & Services industry group

2.67%

Max
41.17%
Q3
15.28%
Median
4.63%
PANW
2.67%
Q1
-5.42%
Min
-33.17%
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Akamai (AKAM) at 9.88% and Palo Alto Networks (PANW) at 5.40% 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%

PANW

Software & Services industry group

5.40%

Max
46.89%
Q3
17.64%
Median
8.73%
PANW
5.40%
Q1
-2.13%
Min
-30.45%
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Akamai (AKAM) and Palo Alto Networks (PANW)
MetricAKAMPANW
ROE (TTM)7.85%1.74%
ROA (TTM)2.18%1.40%
Net Margin (TTM)8.84%2.67%
Operating Margin (TTM)9.88%5.40%
Gross Margin (TTM)56.39%70.38%

Growth

Revenue Growth

Palo Alto Networks (PANW) at 24.50% 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. Palo Alto Networks (PANW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Akamai (AKAM) at -6.12% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -75.00% drops into the bottom quartile, signaling weaker earnings momentum.

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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Akamai (AKAM) and Palo Alto Networks (PANW)
MetricAKAMPANW
Revenue Growth (YoY)5.44%24.50%
Revenue Growth (3Y CAGR)5.18%18.54%
EPS Growth (YoY)-6.12%-75.00%
EPS Growth (3Y CAGR)-1.98%-14.50%

Financial Strength

Current Ratio (MRQ)

Akamai (AKAM) at 2.13 keeps current ratio within its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.

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

PANW

Software & Services industry group

0.87

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
PANW
0.87
Min
0.03
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Palo Alto Networks (PANW) at 0.09 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

PANW

Software & Services industry group

0.09

Max
2.52
Q3
1.13
Median
0.40
PANW
0.09
Q1
0.07
Min
0.00
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Akamai (AKAM) vs. Palo Alto Networks (PANW): 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 Palo Alto Networks (PANW)
MetricAKAMPANW
Current Ratio (MRQ)2.130.87
Debt / Equity (MRQ)1.840.09
Net Debt / EBITDA5.78-0.32

Dividends

Dividend Yield (TTM)

Neither Akamai (AKAM) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

PANW

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Neither Akamai (AKAM) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

PANW

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for Akamai (AKAM) and Palo Alto Networks (PANW)
MetricAKAMPANW
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Akamai (AKAM) at 32.33 is near its industry’s usual P/E ratio, while Palo Alto Networks (PANW) at 784.60 sits above its peer range — an unusually expensive price for PANW’s trailing earnings.

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

PANW

Software & Services industry group

784.60

PANW
784.60
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Akamai (AKAM) at 2.72 prices around its industry’s typical P/S ratio, while Palo Alto Networks (PANW) at 22.37 clears its benchmark range — PANW looks notably rich on 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

PANW

Software & Services industry group

22.37

PANW
22.37
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Akamai (AKAM) at 2.32 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 9.30 carries an above-peer premium to book — PANW is pricier on assets.

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

PANW

Software & Services industry group

9.30

Max
16.63
PANW
9.30
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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Akamai (AKAM) vs. Palo Alto Networks (PANW): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Akamai (AKAM) and Palo Alto Networks (PANW)
MetricAKAMPANW
P/E Ratio (TTM)32.33784.60
P/S Ratio (TTM)2.7222.37
P/B Ratio (MRQ)2.329.30
Free Cash Flow Yield (TTM)1.51%1.65%