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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.

Company profile comparison for Akamai (AKAM) and Zoom Communications (ZM)
Profile ItemAKAMZM
NameAkamai Technologies, Inc.Zoom Communications, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryInternet Services & InfrastructureApplication Software
Market Capitalization11.94 billion USD26.23 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 29, 1999April 18, 2019
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AKAM
ZM
GSPC
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Akamai (AKAM) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Akamai (AKAM) and Zoom Communications (ZM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Akamai (AKAM) and Zoom Communications (ZM)
MetricAKAMZM
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

AKAM
ZM
GSPC
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Akamai (AKAM) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Akamai (AKAM) and Zoom Communications (ZM)
MetricAKAMZM
Volatility (1Y, Annualized)62.11%45.03%
Beta (5Y)0.690.99
Max Drawdown (5Y)-51.69%-79.08%
Avg. Volume (3M)4.75M2.88M

Risk-Adjusted Performance

Risk-Return Positioning

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AKAM and ZM 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 Zoom Communications (ZM)
MetricAKAMZM
Sharpe Ratio (1Y)-0.110.18
Sortino Ratio (1Y)-0.170.28

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%
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their ROE against the Software & Services industry group benchmark.

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%
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their net margin against the Software & Services industry group benchmark.

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%
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Akamai (AKAM) and Zoom Communications (ZM)
MetricAKAMZM
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.

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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their Revenue Growth across different time periods.

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.

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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Akamai (AKAM) and Zoom Communications (ZM)
MetricAKAMZM
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
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their current ratio against the Software & Services industry group benchmark.

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
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Akamai (AKAM) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM)
MetricAKAMZM
Current Ratio (MRQ)2.133.83
Debt / Equity (MRQ)1.840.01
Net Debt / EBITDA5.78-5.39

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%
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their dividend yield against the Software & Services industry group benchmark.

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%
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Akamai (AKAM) and Zoom Communications (ZM)
MetricAKAMZM
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
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

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
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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
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Akamai (AKAM) vs. Zoom Communications (ZM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Akamai (AKAM) and Zoom Communications (ZM)
MetricAKAMZM
P/E Ratio (TTM)32.338.34
P/S Ratio (TTM)2.725.25
P/B Ratio (MRQ)2.322.32
Free Cash Flow Yield (TTM)1.51%7.53%