Akamai Technologies, Inc. (AKAM) vs Gen Digital Inc. (GEN)

Akamai Technologies, Inc. and Gen Digital Inc. are both Software Infrastructure companies. Gen Digital Inc. is the larger, with a market value of $14.9B against $13.3B — 1.1× the size. Gen Digital Inc. trades at the lower P/E: 13.9× against 30.8×. Gen Digital Inc. grew revenue faster over the last twelve months: 20.2% against 5.87%. Gen Digital Inc. has the higher net margin (20.7% vs 9.51%) and the higher return on invested capital (12.9% vs 3.18%). Across the 22 metrics below, Gen Digital Inc. leads on 17 and Akamai Technologies, Inc. on 5.

Valuation

Metric AKAM GEN Software Infrastructure median
P/E 30.81 13.89 28.38
P/S 2.94 2.85 2.98
P/B 2.68 5.45 2.93
Price to free cash flow 20.17 9.28 16.28
EV/EBITDA 14.17 8.45 13.92
EV/Sales 3.91 4.34 2.90
Earnings yield 3.25% 7.20% 0.14%
Free cash flow yield 4.96% 10.78% 1.24%

Profitability

Metric AKAM GEN Software Infrastructure median
Gross margin 57.45% 78.01% 61.00%
Operating margin 10.54% 41.68% 0.00%
Net margin 9.51% 20.73% 0.00%
Free cash flow margin 14.57% 30.71% 1.67%
Return on equity 8.92% 41.94% 0.60%
Return on assets 3.21% 6.58% 0.00%
Return on invested capital 3.18% 12.91% 0.00%

Growth

Metric AKAM GEN Software Infrastructure median
Revenue growth (TTM) 5.87% 20.16% 13.41%
EPS growth (last fiscal year) (6.12%) 52.43% 27.10%
Revenue growth, 5-year CAGR 5.64% 14.41% 15.57%
Net income growth, 5-year CAGR (4.09%) 11.92% 0.00%

Health

Metric AKAM GEN Software Infrastructure median
Debt to equity 1.59 3.07 0.05
Current ratio 1.64 0.47 1.55
Net debt to EBITDA 2.28 2.98 0.08

Dividend

Metric AKAM GEN Software Infrastructure median
Dividend yield — 2.07% 1.20%
Payout ratio — 0.29 0.29

Size

Metric AKAM GEN Software Infrastructure median
Market cap 13.27b 14.86b 752.37m

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