Akamai Technologies (NASDAQ: AKAM) and Manhattan Associates (NASDAQ:MANH) are both mid-cap it services & consulting – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Profitability

This table compares Akamai Technologies and Manhattan Associates’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akamai Technologies 11.84% 10.28% 7.52%
Manhattan Associates 20.38% 74.19% 41.53%

Risk & Volatility

Akamai Technologies has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

84.3% of Akamai Technologies shares are owned by institutional investors. 3.2% of Akamai Technologies shares are owned by company insiders. Comparatively, 1.0% of Manhattan Associates shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Akamai Technologies and Manhattan Associates, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akamai Technologies 2 11 9 0 2.32
Manhattan Associates 0 3 2 0 2.40

Akamai Technologies presently has a consensus price target of $61.14, suggesting a potential upside of 10.29%. Manhattan Associates has a consensus price target of $65.00, suggesting a potential upside of 53.23%. Given Manhattan Associates’ stronger consensus rating and higher possible upside, analysts plainly believe Manhattan Associates is more favorable than Akamai Technologies.

Earnings & Valuation

This table compares Akamai Technologies and Manhattan Associates’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Akamai Technologies $2.34 billion 4.01 $316.13 million $1.67 33.20
Manhattan Associates $604.56 million 4.84 $124.23 million $1.74 24.38

Akamai Technologies has higher revenue and earnings than Manhattan Associates. Manhattan Associates is trading at a lower price-to-earnings ratio than Akamai Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Manhattan Associates beats Akamai Technologies on 8 of the 14 factors compared between the two stocks.

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.

About Manhattan Associates

Manhattan Associates, Inc. (Manhattan) is a developer and provider of supply chain commerce solutions. The Company operates through three geographical segments: the Americas, Europe, Middle East and Africa (EMEA), and the Asia Pacific (APAC). It is engaged in developing, selling, deploying, servicing and maintaining software solutions designed to manage supply chains, inventory and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. Its solutions consist of software, services and hardware, which coordinate people, workflows, assets, events and tasks across the functions linked in a supply chain from planning through execution. Its supply chain solutions consist of three components: Distribution Management, Transportation Management and Visibility. Its Omni-Channel Solutions include Omni-Channel Central Solutions and Omni-Channel Local Solutions. Its Inventory solutions include Inventory Optimization and Planning.

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