Does Akamai Technologies Stock Lead the Pack?
With Akamai Technologies surging 17% in a Week, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Akamai Technologies (AKAM) stock stacks up against its peers in size, valuation, growth and margin.
- AKAM’s operating margin of 15.4% is strong, lower than most peers – trailing VRSN (67.6%).
- AKAM’s revenue growth of 4.2% in the last 12 months is low, lagging NET, VRSN, FSLY, GDDY.
- AKAM’s stock is down 2.5% in last 1 year, underperforming NET, VRSN, FSLY, and currently trades at a PE of 24.7.
As a quick background, Akamai Technologies provides cloud services that secure, deliver, and optimize content and applications, protecting infrastructure, websites, APIs, and users from cyberattacks and online threats globally.
A single stock can be risky, but there is a huge value to a broader, diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the Trefis High Quality Portfolio (HQ). HQ has outperformed its benchmark — a combination of S&P 500, Russell, and S&P midcap index — and achieved returns exceeding 105% since its inception. Risk management is key — consider what the long-term portfolio performance could be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
| AKAM | NET | VRSN | FSLY | GDDY | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 12.5 | 84.0 | 23.1 | 1.8 | 18.2 |
| Revenue ($ Bil) | 4.1 | 2.0 | 1.6 | 0.6 | 4.8 |
| PE Ratio | 24.7 | -815.4 | 28.5 | -12.7 | 22.6 |
| LTM Revenue Growth | 4.2% | 28.1% | 5.5% | 9.4% | 7.9% |
| LTM Operating Margin | 15.4% | -9.6% | 67.6% | -23.2% | 21.8% |
| LTM FCF Margin | 17.4% | 10.4% | 61.8% | 5.8% | 30.6% |
| 12M Market Return | -2.5% | 163.6% | 35.7% | 55.5% | -26.1% |
Why does this matter? AKAM just went up 19% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell AKAM Stock to see if Akamai Technologies holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through AKAM Dip Buyer Analysis lens.
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| AKAM | 4.2% | 4.7% | 5.4% | 4.5% |
| NET | 28.1% | 28.8% | 33.0% | 48.6% |
| VRSN | 5.5% | 4.3% | 4.8% | 7.3% |
| FSLY | 9.4% | 7.4% | 16.9% | 22.1% |
| GDDY | 7.9% | 7.5% | 4.0% | 7.2% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| AKAM | 15.4% | 15.9% | 18.5% | 19.7% |
| NET | -9.6% | -9.3% | -14.3% | -20.6% |
| VRSN | 67.6% | 67.9% | 67.0% | 66.2% |
| FSLY | -23.2% | -28.3% | -38.3% | -56.9% |
| GDDY | 21.8% | 20.4% | 15.0% | 12.6% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| AKAM | 24.7 | 28.7 | 33.0 | 25.6 |
| NET | -815.4 | -466.5 | -151.0 | -76.3 |
| VRSN | 28.5 | 25.8 | 26.0 | 32.9 |
| FSLY | -12.7 | -8.2 | -17.2 | -5.2 |
| GDDY | 22.6 | 29.8 | 11.5 | 33.7 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.