Seek Returns logo

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

Updated on

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

Company Profile

SymbolAKAMU
Company NameAkamai Technologies, Inc.Unity Software Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesSoftware
Market Capitalization10.91 billion USD15.14 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 29, 1999September 18, 2020
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolAKAMU
5-Day Price Return1.39%-6.72%
13-Week Price Return-1.97%61.15%
26-Week Price Return-24.31%72.81%
52-Week Price Return-23.89%114.35%
Month-to-Date Return0.24%7.43%
Year-to-Date Return-20.03%59.50%
10-Day Avg. Volume2.84M13.19M
3-Month Avg. Volume2.26M13.09M
3-Month Volatility25.31%70.37%
Beta0.762.33

Profitability

Return on Equity (TTM)

AKAM

9.07%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

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.

U

-13.62%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

U has a negative Return on Equity of -13.62%. 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.

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

Net Profit Margin (TTM)

AKAM

10.40%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

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.

U

-24.38%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

U has a negative Net Profit Margin of -24.38%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

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

Operating Profit Margin (TTM)

AKAM

12.85%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

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.

U

-25.56%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

U has a negative Operating Profit Margin of -25.56%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

SymbolAKAMU
Return on Equity (TTM)9.07%-13.62%
Return on Assets (TTM)4.13%-6.47%
Net Profit Margin (TTM)10.40%-24.38%
Operating Profit Margin (TTM)12.85%-25.56%
Gross Profit Margin (TTM)59.13%74.43%

Financial Strength

Current Ratio (MRQ)

AKAM

2.31

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

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.

U

2.73

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

U’s Current Ratio of 2.73 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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

Debt-to-Equity Ratio (MRQ)

AKAM

0.92

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
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.

U

0.70

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

U’s Debt-to-Equity Ratio of 0.70 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

AKAM

85.36

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

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.

U

-27.34

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

U has a negative Interest Coverage Ratio of -27.34. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolAKAMU
Current Ratio (MRQ)2.312.73
Quick Ratio (MRQ)1.982.60
Debt-to-Equity Ratio (MRQ)0.920.70
Interest Coverage Ratio (TTM)85.36-27.34

Growth

Revenue Growth

AKAM vs. U: 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. U: 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
2.80%
Q3
1.74%
Median
0.62%
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.

U

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

U 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.

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

Dividend Payout Ratio (TTM)

AKAM

0.00%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
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.

U

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

U 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.

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

Dividend at a Glance

SymbolAKAMU
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

AKAM

25.68

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

AKAM’s P/E Ratio of 25.68 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.

U

--

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

P/E Ratio data for U is currently unavailable.

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

Price-to-Sales Ratio (TTM)

AKAM

2.67

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

AKAM’s P/S Ratio of 2.67 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.

U

8.54

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

U’s P/S Ratio of 8.54 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

AKAM

2.61

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

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.

U

3.16

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

U’s P/B Ratio of 3.16 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

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

Valuation at a Glance

SymbolAKAMU
Price-to-Earnings Ratio (TTM)25.68--
Price-to-Sales Ratio (TTM)2.678.54
Price-to-Book Ratio (MRQ)2.613.16
Price-to-Free Cash Flow Ratio (TTM)20.9344.37