Akamai Technologies, Inc. (AKAM) vs GitLab Inc. (GTLB)

Akamai Technologies, Inc. and GitLab Inc. are both Software Infrastructure companies. Akamai Technologies, Inc. is the larger, with a market value of $13.3B against $9.3B — 1.4× the size. GitLab Inc. has negative trailing earnings, so its P/E is not meaningful; Akamai Technologies, Inc. trades at 30.8×. GitLab Inc. grew revenue faster over the last twelve months: 23.0% against 5.87%. Akamai Technologies, Inc. has the higher net margin (9.51% vs −4.99%) and the higher return on invested capital (3.18% vs 0.00%). Across the 20 metrics below, Akamai Technologies, Inc. leads on 13 and GitLab Inc. on 7.

Valuation

Metric AKAM GTLB Software Infrastructure median
P/E 30.81 n/m 28.38
P/S 2.94 8.41 2.98
P/B 2.68 9.13 2.93
Price to free cash flow 20.17 41.51 16.28
EV/EBITDA 14.17 n/m 13.92
EV/Sales 3.91 7.22 2.90
Earnings yield 3.25% (0.60%) 0.14%
Free cash flow yield 4.96% 2.41% 1.24%

Profitability

Metric AKAM GTLB Software Infrastructure median
Gross margin 57.45% 85.75% 61.00%
Operating margin 10.54% (8.55%) 0.00%
Net margin 9.51% (4.99%) 0.00%
Free cash flow margin 14.57% 20.25% 1.67%
Return on equity 8.92% (5.60%) 0.60%
Return on assets 3.21% (3.33%) 0.00%
Return on invested capital 3.18% 0.00% 0.00%

Growth

Metric AKAM GTLB Software Infrastructure median
Revenue growth (TTM) 5.87% 22.99% 13.41%
EPS growth (last fiscal year) (6.12%) (1,600.00%) 27.10%
Revenue growth, 5-year CAGR 5.64% 44.39% 15.57%
Net income growth, 5-year CAGR (4.09%) 0.00% 0.00%

Health

Metric AKAM GTLB Software Infrastructure median
Debt to equity 1.59 0.00 0.05
Current ratio 1.64 2.41 1.55
Net debt to EBITDA 2.28 101.14 0.08

Dividend

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

Size

Metric AKAM GTLB Software Infrastructure median
Market cap 13.27b 9.32b 752.37m

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