Akamai Technologies, Inc. (AKAM) vs GoDaddy Inc. (GDDY)

Akamai Technologies, Inc. and GoDaddy Inc. are both Software Infrastructure companies. GoDaddy Inc. is the larger, with a market value of $14.6B against $11.2B — 1.3× the size. GoDaddy Inc. trades at the lower P/E: 16.4× against 27.6×. GoDaddy Inc. grew revenue faster over the last twelve months: 6.38% against 5.87%. GoDaddy Inc. has the higher net margin (18.6% vs 9.51%) and the higher return on invested capital (33.1% vs 3.18%). Across the 21 metrics below, GoDaddy Inc. leads on 18 and Akamai Technologies, Inc. on 3.

Valuation

Metric AKAM GDDY Software Infrastructure median
P/E 27.63 16.41 24.43
P/S 2.64 2.92 2.81
P/B 2.40 n/m 2.88
Price to free cash flow 18.08 8.66 17.94
EV/EBITDA 13.07 12.60 14.51
EV/Sales 3.61 3.43 2.91
Earnings yield 3.62% 6.09% 0.00%
Free cash flow yield 5.53% 11.54% 0.49%

Profitability

Metric AKAM GDDY Software Infrastructure median
Gross margin 57.45% 63.75% 57.45%
Operating margin 10.54% 25.72% 0.00%
Net margin 9.51% 18.56% 0.00%
Free cash flow margin 14.57% 33.66% 0.00%
Return on equity 8.92% (4,091.97%) 0.00%
Return on assets 3.21% 12.10% 0.00%
Return on invested capital 3.18% 33.14% 0.00%

Growth

Metric AKAM GDDY Software Infrastructure median
Revenue growth (TTM) 5.87% 6.38% 14.28%
EPS growth (last fiscal year) (6.12%) (3.57%) 18.26%
Revenue growth, 5-year CAGR 5.64% 8.34% 16.15%
Net income growth, 5-year CAGR (4.09%) 0.00% 0.00%

Health

Metric AKAM GDDY Software Infrastructure median
Debt to equity 1.59 (27.17) 0.02
Current ratio 1.64 0.61 1.53
Net debt to EBITDA 2.28 2.17 0.05

Dividend

Metric AKAM GDDY Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric AKAM GDDY Software Infrastructure median
Market cap 11.19b 14.57b 661.51m

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