Akamai Technologies, Inc. (AKAM) vs Netskope Inc. (NTSK)

Akamai Technologies, Inc. and Netskope Inc. are both Software Infrastructure companies. Akamai Technologies, Inc. is the larger, with a market value of $12.4B against $8.9B — 1.4× the size. Netskope Inc. has negative trailing earnings, so its P/E is not meaningful; Akamai Technologies, Inc. trades at 30.0×. Akamai Technologies, Inc. has the higher net margin (9.51% vs −91.8%) and the higher return on invested capital (3.18% vs 0.00%). Across the 16 metrics below, Akamai Technologies, Inc. leads on 11 and Netskope Inc. on 5.

Valuation

Metric AKAM NTSK Software Infrastructure median
P/E 30.05 n/m 26.15
P/S 2.87 11.06 2.87
P/B 2.61 56.63 2.94
Price to free cash flow 19.67 n/m 17.26
EV/EBITDA 13.91 n/m 15.00
EV/Sales 3.84 10.60 2.95
Earnings yield 3.33% (11.63%) 0.00%
Free cash flow yield 5.08% (0.84%) 0.39%

Profitability

Metric AKAM NTSK Software Infrastructure median
Gross margin 57.45% 69.92% 59.21%
Operating margin 10.54% (94.66%) 0.00%
Net margin 9.51% (91.84%) 0.00%
Free cash flow margin 14.57% (9.31%) 0.00%
Return on equity 8.92% 106.88% 0.00%
Return on assets 3.21% (86.11%) 0.00%
Return on invested capital 3.18% 0.00% 0.00%

Growth

Metric AKAM NTSK Software Infrastructure median
Revenue growth (TTM) 5.87% — 13.57%
EPS growth (last fiscal year) (6.12%) 12.64% 20.22%
Revenue growth, 5-year CAGR 5.64% — 16.02%
Net income growth, 5-year CAGR (4.09%) — 0.00%

Health

Metric AKAM NTSK Software Infrastructure median
Debt to equity 1.59 4.45 0.02
Current ratio 1.64 2.01 1.54
Net debt to EBITDA 2.28 0.79 0.05

Dividend

Metric AKAM NTSK Software Infrastructure median
Dividend yield — — 1.09%
Payout ratio — — 0.30

Size

Metric AKAM NTSK Software Infrastructure median
Market cap 12.44b 8.92b 655.75m

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