Seek Returns logo

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

Updated on

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

Company Profile

SymbolAKAMUI
Company NameAkamai Technologies, Inc.Ubiquiti Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesCommunications Equipment
Market Capitalization11.00 billion USD41.28 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 29, 1999October 14, 2011
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolAKAMUI
5-Day Price Return-1.65%0.67%
13-Week Price Return-4.85%69.31%
26-Week Price Return-2.61%135.48%
52-Week Price Return-24.17%204.85%
Month-to-Date Return1.27%3.30%
Year-to-Date Return-19.79%105.57%
10-Day Avg. Volume1.37M0.18M
3-Month Avg. Volume1.95M0.15M
3-Month Volatility26.61%73.93%
Beta0.711.34

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.

UI

179.90%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

UI’s Return on Equity of 179.90% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AKAM vs. UI: A comparison of their Return on Equity (TTM) against their respective IT Services and Communications Equipment 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.

UI

27.66%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

UI’s Net Profit Margin of 27.66% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

AKAM vs. UI: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Communications Equipment 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.

UI

32.50%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

UI’s Operating Profit Margin of 32.50% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolAKAMUI
Return on Equity (TTM)9.07%179.90%
Return on Assets (TTM)4.13%55.77%
Net Profit Margin (TTM)10.40%27.66%
Operating Profit Margin (TTM)12.85%32.50%
Gross Profit Margin (TTM)59.13%43.42%

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.

UI

1.65

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

UI’s Current Ratio of 1.65 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

AKAM vs. UI: A comparison of their Current Ratio (MRQ) against their respective IT Services and Communications Equipment 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.

UI

0.37

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

UI’s Debt-to-Equity Ratio of 0.37 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AKAM vs. UI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Communications Equipment 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.

UI

27.30

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

UI’s Interest Coverage Ratio of 27.30 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolAKAMUI
Current Ratio (MRQ)2.311.65
Quick Ratio (MRQ)1.980.62
Debt-to-Equity Ratio (MRQ)0.920.37
Interest Coverage Ratio (TTM)85.3627.30

Growth

Revenue Growth

AKAM vs. UI: 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. UI: 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.

UI

0.35%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

UI’s Dividend Yield of 0.35% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

AKAM vs. UI: A comparison of their Dividend Yield (TTM) against their respective IT Services and Communications Equipment 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.

UI

20.39%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

UI’s Dividend Payout Ratio of 20.39% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolAKAMUI
Dividend Yield (TTM)0.00%0.35%
Dividend Payout Ratio (TTM)0.00%20.39%

Valuation

Price-to-Earnings Ratio (TTM)

AKAM

26.04

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

AKAM’s P/E Ratio of 26.04 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.

UI

58.05

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

UI’s P/E Ratio of 58.05 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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

Price-to-Sales Ratio (TTM)

AKAM

2.71

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

AKAM’s P/S Ratio of 2.71 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.

UI

16.06

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

With a P/S Ratio of 16.06, UI trades at a valuation that eclipses even the highest in the Communications Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AKAM vs. UI: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Communications Equipment 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.

UI

37.26

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

At 37.26, UI’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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

Valuation at a Glance

SymbolAKAMUI
Price-to-Earnings Ratio (TTM)26.0458.05
Price-to-Sales Ratio (TTM)2.7116.06
Price-to-Book Ratio (MRQ)2.6137.26
Price-to-Free Cash Flow Ratio (TTM)21.2365.86