Akamai Technologies, Inc. (AKAM) vs DigitalOcean Holdings, Inc. (DOCN)

Akamai Technologies, Inc. and DigitalOcean Holdings, Inc. are both Software Infrastructure companies. Akamai Technologies, Inc. is the larger, with a market value of $19.2B against $16.7B — 1.1× the size. Akamai Technologies, Inc. trades at the lower P/E: 40.0× against 55.2×. DigitalOcean Holdings, Inc. grew revenue faster over the last twelve months: 21.4% against 5.87%. DigitalOcean Holdings, Inc. has the higher net margin (23.3% vs 9.51%) and the higher return on invested capital (6.10% vs 3.18%). Across the 21 metrics below, Akamai Technologies, Inc. leads on 11 and DigitalOcean Holdings, Inc. on 10.

Valuation

Metric AKAM DOCN Software Infrastructure median
P/E 39.98 55.24 28.02
P/S 3.81 14.46 3.07
P/B 3.47 15.71 3.36
Price to free cash flow 26.17 n/m 17.12
EV/EBITDA 17.34 47.30 14.91
EV/Sales 4.79 15.05 3.03
Earnings yield 2.50% 1.81% 0.13%
Free cash flow yield 3.82% (0.03%) 1.15%

Profitability

Metric AKAM DOCN Software Infrastructure median
Gross margin 57.45% 57.22% 61.23%
Operating margin 10.54% 14.80% 0.00%
Net margin 9.51% 23.27% 0.00%
Free cash flow margin 14.57% (0.44%) 1.67%
Return on equity 8.92% 62.27% 0.59%
Return on assets 3.21% 9.71% 0.00%
Return on invested capital 3.18% 6.10% 0.00%

Growth

Metric AKAM DOCN Software Infrastructure median
Revenue growth (TTM) 5.87% 21.41% 13.41%
EPS growth (last fiscal year) (6.12%) 183.15% —
Revenue growth, 5-year CAGR 5.64% 23.14% 15.81%
Net income growth, 5-year CAGR (4.09%) 0.00% 0.00%

Health

Metric AKAM DOCN Software Infrastructure median
Debt to equity 1.59 1.47 0.06
Current ratio 1.64 1.31 1.55
Net debt to EBITDA 2.28 3.87 0.08

Dividend

Metric AKAM DOCN Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric AKAM DOCN Software Infrastructure median
Market cap 19.18b 16.69b 835.96m

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