Reviewing Akamai Technologies (AKAM) & Virtusa (VRTU)
Akamai Technologies (NASDAQ: AKAM) and Virtusa (NASDAQ:VRTU) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Volatility and Risk
Akamai Technologies has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Virtusa has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.
Institutional & Insider Ownership
86.3% of Akamai Technologies shares are held by institutional investors. Comparatively, 88.0% of Virtusa shares are held by institutional investors. 3.2% of Akamai Technologies shares are held by insiders. Comparatively, 6.0% of Virtusa shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Akamai Technologies and Virtusa, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Akamai Technologies presently has a consensus price target of $63.38, suggesting a potential downside of 2.78%. Virtusa has a consensus price target of $48.86, suggesting a potential upside of 8.26%. Given Virtusa’s stronger consensus rating and higher possible upside, analysts plainly believe Virtusa is more favorable than Akamai Technologies.
Earnings & Valuation
This table compares Akamai Technologies and Virtusa’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Akamai Technologies||$2.34 billion||4.71||$316.13 million||$1.66||39.27|
|Virtusa||$858.73 million||1.54||$11.85 million||$0.71||63.56|
Akamai Technologies has higher revenue and earnings than Virtusa. Akamai Technologies is trading at a lower price-to-earnings ratio than Virtusa, indicating that it is currently the more affordable of the two stocks.
This table compares Akamai Technologies and Virtusa’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Akamai Technologies beats Virtusa 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.
Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.
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