AKAM vs. ZM: Akamai vs. Zoom Communications Stock Comparison
How do Akamai (AKAM) and Zoom Communications (ZM) 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 Zoom Communications (ZM) both fall under the Software & Services industry group, but AKAM is classified in IT Services while ZM is classified in Software.
| Profile Item | AKAM | ZM |
|---|---|---|
| Name | Akamai Technologies, Inc. | Zoom Communications, Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | Software |
| GICS Sub-Industry | Internet Services & Infrastructure | Application Software |
| Market Capitalization | 11.94 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | October 29, 1999 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AKAM | ZM |
|---|---|---|
| Total Return (1Y) | -2.77% | 12.58% |
| Total Return (3Y, Annualized) | -9.48% | 14.89% |
| Total Return (5Y, Annualized) | -5.72% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AKAM | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 62.11% | 45.03% |
| Beta (5Y) | 0.69 | 0.99 |
| Max Drawdown (5Y) | -51.69% | -79.08% |
| Avg. Volume (3M) | 4.75M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AKAM | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.11 | 0.18 |
| Sortino Ratio (1Y) | -0.17 | 0.28 |
Profitability
ROE (TTM)
Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Akamai (AKAM) at 7.85% is closer to the peer norm — stronger capital efficiency for ZM.
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%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% converts revenue to bottom-line profit above its industry’s benchmark range, while Akamai (AKAM) at 8.84% keeps roughly the typical share for its industry.
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%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Zoom Communications (ZM) at 24.61% operates in the top operating margin quartile, ahead of Akamai (AKAM) at 9.88%, which runs around its industry’s norm.
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%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | AKAM | ZM |
|---|---|---|
| ROE (TTM) | 7.85% | 32.14% |
| ROA (TTM) | 2.18% | 6.11% |
| Net Margin (TTM) | 8.84% | 65.19% |
| Operating Margin (TTM) | 9.88% | 24.61% |
| Gross Margin (TTM) | 56.39% | 77.66% |
Growth
Revenue Growth
Both Akamai (AKAM) at 5.44% and Zoom Communications (ZM) at 4.36% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.
EPS Growth
Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Akamai (AKAM) at -6.12% is closer to the peer norm — faster per-share earnings growth for ZM.
Growth Metrics
| Metric | AKAM | ZM |
|---|---|---|
| Revenue Growth (YoY) | 5.44% | 4.36% |
| Revenue Growth (3Y CAGR) | 5.18% | 3.49% |
| EPS Growth (YoY) | -6.12% | 92.52% |
| EPS Growth (3Y CAGR) | -1.98% | 162.93% |
Financial Strength
Current Ratio (MRQ)
Akamai (AKAM) at 2.13 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
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
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower quartile, while Akamai (AKAM) at 1.84 sits in the higher-leverage quartile.
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
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | AKAM | ZM |
|---|---|---|
| Current Ratio (MRQ) | 2.13 | 3.83 |
| Debt / Equity (MRQ) | 1.84 | 0.01 |
| Net Debt / EBITDA | 5.78 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Akamai (AKAM) nor Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Akamai (AKAM) nor Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AKAM | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Akamai (AKAM) at 32.33 is closer to its industry’s usual earnings multiple — a discount for ZM, though growth and earnings durability still matter.
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
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
On P/S ratio, both Akamai (AKAM) at 2.72 and Zoom Communications (ZM) at 5.25 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
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
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both Akamai (AKAM) at 2.32 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.
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
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | AKAM | ZM |
|---|---|---|
| P/E Ratio (TTM) | 32.33 | 8.34 |
| P/S Ratio (TTM) | 2.72 | 5.25 |
| P/B Ratio (MRQ) | 2.32 | 2.32 |
| Free Cash Flow Yield (TTM) | 1.51% | 7.53% |