Akamai Technologies, Inc. (AKAM) vs Check Point Software Technologies Ltd. (CHKP)

Akamai Technologies, Inc. and Check Point Software Technologies Ltd. are both Software Infrastructure companies. Check Point Software Technologies Ltd. is the larger, with a market value of $15.1B against $11.2B — 1.4× the size. Check Point Software Technologies Ltd. trades at the lower P/E: 17.2× against 31.0×. Akamai Technologies, Inc. grew revenue faster over the last twelve months: 6.22% against 2.70%. Check Point Software Technologies Ltd. has the higher net margin (31.7% vs 8.84%) and the higher return on invested capital (19.8% vs 2.71%). Across the 22 metrics below, Check Point Software Technologies Ltd. leads on 16 and Akamai Technologies, Inc. on 6.

Valuation

Metric AKAM CHKP Software Infrastructure median
P/E 31.05 17.15 24.52
P/S 2.73 5.29 2.78
P/B 2.33 5.53 2.84
Price to free cash flow 56.77 12.85 18.22
EV/EBITDA 13.89 16.80 13.98
EV/Sales 3.65 5.23 2.92
Earnings yield 3.22% 5.83% 0.00%
Free cash flow yield 1.76% 7.78% 0.37%

Profitability

Metric AKAM CHKP Software Infrastructure median
Gross margin 56.39% 87.19% 57.91%
Operating margin 9.07% 28.31% 0.00%
Net margin 8.84% 31.74% 0.00%
Free cash flow margin 4.80% 41.19% 0.00%
Return on equity 7.85% 30.61% 0.00%
Return on assets 2.94% 13.32% 0.00%
Return on invested capital 2.71% 19.82% 0.00%

Growth

Metric AKAM CHKP Software Infrastructure median
Revenue growth (TTM) 6.22% 2.70% 14.42%
EPS growth (last fiscal year) (6.12%) 28.95% 17.35%
Revenue growth, 5-year CAGR 5.64% 5.71% 16.15%
Net income growth, 5-year CAGR (4.09%) 4.54% 0.00%

Health

Metric AKAM CHKP Software Infrastructure median
Debt to equity 1.47 0.75 0.02
Current ratio 2.13 1.60 1.53
Net debt to EBITDA 2.28 (1.14) 0.05

Dividend

Metric AKAM CHKP Software Infrastructure median
Dividend yield — — 1.04%
Payout ratio — — 0.29

Size

Metric AKAM CHKP Software Infrastructure median
Market cap 11.19b 15.13b 606.60m

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