Analyzing Acxiom Corporation (ACXM) & Akamai Technologies (AKAM)
Acxiom Corporation (NASDAQ: ACXM) and Akamai Technologies (NASDAQ:AKAM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
This table compares Acxiom Corporation and Akamai Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Acxiom Corporation and Akamai Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Acxiom Corporation||$877.96 million||2.03||$77.93 million||($0.02)||-1,119.44|
|Akamai Technologies||$2.42 billion||3.22||$684.09 million||$1.74||26.09|
Akamai Technologies has higher revenue and earnings than Acxiom Corporation. Acxiom Corporation is trading at a lower price-to-earnings ratio than Akamai Technologies, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Acxiom Corporation and Akamai Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Acxiom Corporation presently has a consensus price target of $33.25, suggesting a potential upside of 48.44%. Akamai Technologies has a consensus price target of $61.98, suggesting a potential upside of 36.52%. Given Acxiom Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Acxiom Corporation is more favorable than Akamai Technologies.
Institutional and Insider Ownership
96.4% of Acxiom Corporation shares are held by institutional investors. Comparatively, 86.4% of Akamai Technologies shares are held by institutional investors. 3.5% of Acxiom Corporation shares are held by insiders. Comparatively, 3.2% of Akamai Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Acxiom Corporation has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Akamai Technologies has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Akamai Technologies beats Acxiom Corporation on 8 of the 13 factors compared between the two stocks.
About Acxiom Corporation
Acxiom Corporation (Acxiom) is a technology and enablement services company. The Company operates through three business segments: Marketing Services, Audience Solutions, and Connectivity. The Company’s Marketing Services segment helps clients to unify data at individual level. The Audience Solutions segment helps clients to validate the accuracy of their people-based data, enhance it with additional insight and keep it up to date, enabling clients to reach desired audiences with relevant messages. The Connectivity segment activates data and makes it portable across the open marketing ecosystem. The Company serves a global client base from locations in the United States, Europe and the Asia-Pacific region. The Company’s client base includes organizations in these regions across industry verticals, including financial, insurance and investment services, automotive, retail, telecommunications, healthcare, travel, entertainment, non-profit and government.
About Akamai Technologies
Akamai Technologies, Inc. is engaged in providing cloud services for delivering, optimizing and securing content and business applications over the Internet. The Company is involved in offering content delivery network (CDN) services. Its services include the delivery of content, applications and software over the Internet, as well as mobile and security solutions. Its solutions include Performance and Security Solutions, Media Delivery Solutions, and Service and Support Solutions. Its Performance and Security Solutions include Web and Mobile Performance Solutions, Cloud Security Solutions, Enterprise Solutions and Network Operator Solutions. The Media Delivery Solutions offerings include Adaptive Delivery solutions, Download Delivery offerings, Infinite Media Acceleration solutions Media Services and Media Analytics. It offers a range of professional services and solutions designed to assist its customers with integrating, configuring, optimizing and managing its core offerings.
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