Akamai has done a fantastic job transitioning its business away from the legacy content delivery network, or CDN, upon which the firm was originally built. The CDN business lacks competitive advantages, in our view, and has been in long-term decline, as major media and hyperscale businesses have created their own networks and pushed pricing lower.
Akamai is a major player in the exploding cybersecurity industry, so rapid growth there will more than offset a stagnant core CDN business.
There is little proprietary about a content delivery network. Customers can set up their own CDNs if they have enough need, meaning Akamai will remain at risk of losing customers.
|
Metric
|
AKAM
|
VZ
|
FSLY
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.03 | 8.68 | — |
Price/Book Value | 3.19 | 1.76 | 1.13 |
Price/Sales | 3.89 | 1.26 | 2.06 |
Price/Cash Flow | 9.59 | 4.30 | 14.25 |
|
Metric
|
AKAM
|
VZ
|
FSLY
|
|---|---|---|---|
Quick Ratio | 2.96 | 0.46 | 3.63 |
Current Ratio | 3.25 | 0.63 | 3.83 |
Interest Coverage | 29.08 | 3.54 | −42.81 |
|
Metric
|
AKAM
|
VZ
|
FSLY
|
|---|---|---|---|
Return on Assets (Normalized) | 10.85% | 4.55% | −1.06% |
Return on Equity (Normalized) | 22.65% | 18.30% | −1.78% |
Return on Invested Capital (Normalized) | 11.37% | 7.96% | −2.07% |
|
1-Day Chart
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