Seek Returns logo

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

Updated on

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

Company Overview

XYZ’s market capitalization of 42.58 billion USD is significantly greater than AKAM’s 11.31 billion USD, highlighting its more substantial market valuation.

XYZ carries a higher beta at 2.74, indicating it’s more sensitive to market moves, while AKAM (beta: 0.77) exhibits greater stability.

SymbolAKAMXYZ
Company NameAkamai Technologies, Inc.Block, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureSoftware - Infrastructure
CEOF. Thomson LeightonJack Dorsey
Price79.48 USD69.23 USD
Market Cap11.31 billion USD42.58 billion USD
Beta0.772.74
ExchangeNASDAQNYSE
IPO DateOctober 29, 1999November 19, 2015
ADRNoNo

Historical Performance

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

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.

XYZ

12.76%

Software - Infrastructure Industry

Max
80.61%
Q3
29.97%
Median
2.84%
Q1
-8.35%
Min
-56.26%

XYZ’s Return on Equity of 12.76% is on par with the norm for the Software - Infrastructure industry, indicating its profitability relative to shareholder equity is typical for the sector.

AKAM vs. XYZ: A comparison of their ROE against the Software - Infrastructure industry benchmark.

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.

XYZ

10.35%

Software - Infrastructure Industry

Max
39.31%
Q3
11.97%
Median
1.67%
Q1
-7.10%
Min
-34.29%

XYZ’s Return on Invested Capital of 10.35% is in line with the norm for the Software - Infrastructure industry, reflecting a standard level of efficiency in generating profits from its capital base.

AKAM vs. XYZ: A comparison of their ROIC against the Software - Infrastructure industry benchmark.

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.

XYZ

10.92%

Software - Infrastructure Industry

Max
46.46%
Q3
14.65%
Median
2.66%
Q1
-7.70%
Min
-35.45%

XYZ’s Net Profit Margin of 10.92% 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.

AKAM vs. XYZ: A comparison of their Net Profit Margin against the Software - Infrastructure industry benchmark.

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.

XYZ

5.00%

Software - Infrastructure Industry

Max
48.51%
Q3
16.56%
Median
4.48%
Q1
-6.43%
Min
-40.18%

XYZ’s Operating Profit Margin of 5.00% is around the midpoint for the Software - Infrastructure industry, indicating that its efficiency in managing core business operations is typical for the sector.

AKAM vs. XYZ: A comparison of their Operating Margin against the Software - Infrastructure industry benchmark.

Profitability at a Glance

SymbolAKAMXYZ
Return on Equity (TTM)9.52%12.76%
Return on Assets (TTM)4.53%7.18%
Return on Invested Capital (TTM)4.40%10.35%
Net Profit Margin (TTM)11.26%10.92%
Operating Profit Margin (TTM)12.97%5.00%
Gross Profit Margin (TTM)59.07%38.02%

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.

XYZ

2.27

Software - Infrastructure Industry

Max
3.80
Q3
2.25
Median
1.51
Q1
1.10
Min
0.23

XYZ’s Current Ratio of 2.27 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.

AKAM vs. XYZ: A comparison of their Current Ratio against the Software - Infrastructure industry benchmark.

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.

XYZ

0.28

Software - Infrastructure Industry

Max
2.56
Q3
1.12
Median
0.33
Q1
0.05
Min
0.00

XYZ’s Debt-to-Equity Ratio of 0.28 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.

AKAM vs. XYZ: A comparison of their D/E Ratio against the Software - Infrastructure industry benchmark.

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.

XYZ

25.40

Software - Infrastructure Industry

Max
32.21
Q3
5.24
Median
0.95
Q1
-17.99
Min
-50.82

XYZ’s Interest Coverage Ratio of 25.40 is in the upper quartile for the Software - Infrastructure industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AKAM vs. XYZ: A comparison of their Interest Coverage against the Software - Infrastructure industry benchmark.

Financial Strength at a Glance

SymbolAKAMXYZ
Current Ratio (TTM)1.182.27
Quick Ratio (TTM)1.182.26
Debt-to-Equity Ratio (TTM)1.010.28
Debt-to-Asset Ratio (TTM)0.460.17
Net Debt-to-EBITDA Ratio (TTM)2.78-3.67
Interest Coverage Ratio (TTM)17.9825.40

Growth

The following charts compare key year-over-year (YoY) growth metrics for AKAM and XYZ. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AKAM vs. XYZ: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AKAM vs. XYZ: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AKAM vs. XYZ: A comparison of their annual year-over-year 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.

XYZ

0.00%

Software - Infrastructure Industry

Max
4.07%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

XYZ 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. XYZ: A comparison of their Dividend Yield against the Software - Infrastructure industry benchmark.

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.

XYZ

0.00%

Software - Infrastructure Industry

Max
48.68%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

XYZ 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. XYZ: A comparison of their Payout Ratio against the Software - Infrastructure industry benchmark.

Dividend at a Glance

SymbolAKAMXYZ
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.

XYZ

16.40

Software - Infrastructure Industry

Max
107.77
Q3
54.40
Median
28.10
Q1
18.03
Min
5.32

In the lower quartile for the Software - Infrastructure industry, XYZ’s P/E Ratio of 16.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AKAM vs. XYZ: A comparison of their P/E Ratio against the Software - Infrastructure industry benchmark.

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.

XYZ

0.69

Software - Infrastructure Industry

Max
8.12
Q3
3.94
Median
2.13
Q1
0.94
Min
0.01

In the lower quartile for the Software - Infrastructure industry, XYZ’s Forward PEG Ratio of 0.69 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.

AKAM vs. XYZ: A comparison of their Forward PEG Ratio against the Software - Infrastructure industry benchmark.

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.

XYZ

1.78

Software - Infrastructure Industry

Max
18.25
Q3
9.05
Median
4.77
Q1
2.30
Min
0.11

In the lower quartile for the Software - Infrastructure industry, XYZ’s P/S Ratio of 1.78 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AKAM vs. XYZ: A comparison of their P/S Ratio against the Software - Infrastructure industry benchmark.

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.

XYZ

2.00

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.

AKAM vs. XYZ: A comparison of their P/B Ratio against the Software - Infrastructure industry benchmark.

Valuation at a Glance

SymbolAKAMXYZ
Price-to-Earnings Ratio (P/E, TTM)26.1716.40
Forward PEG Ratio (TTM)3.080.69
Price-to-Sales Ratio (P/S, TTM)2.811.78
Price-to-Book Ratio (P/B, TTM)2.582.00
Price-to-Free Cash Flow Ratio (P/FCF, TTM)14.3335.56
EV-to-EBITDA (TTM)11.7021.15
EV-to-Sales (TTM)3.691.52