Critical Contrast: Akamai Technologies (AKAM) vs. CACI International (CACI)

Akamai Technologies (NASDAQ: AKAM) and CACI International (NYSE:CACI) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Akamai Technologies and CACI International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akamai Technologies 8.72% 9.90% 7.20%
CACI International 6.13% 9.64% 4.50%

Institutional & Insider Ownership

84.8% of Akamai Technologies shares are held by institutional investors. Comparatively, 87.0% of CACI International shares are held by institutional investors. 3.2% of Akamai Technologies shares are held by insiders. Comparatively, 1.4% of CACI International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Akamai Technologies has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, CACI International has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Akamai Technologies and CACI International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akamai Technologies 3 10 12 0 2.36
CACI International 0 5 8 0 2.62

Akamai Technologies currently has a consensus target price of $68.65, indicating a potential upside of 2.63%. CACI International has a consensus target price of $151.80, indicating a potential upside of 1.10%. Given Akamai Technologies’ higher possible upside, research analysts clearly believe Akamai Technologies is more favorable than CACI International.

Valuation and Earnings

This table compares Akamai Technologies and CACI International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akamai Technologies $2.50 billion 4.52 $218.32 million $1.26 53.09
CACI International $4.35 billion 0.85 $163.67 million $10.69 14.05

Akamai Technologies has higher earnings, but lower revenue than CACI International. CACI International 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

Akamai Technologies beats CACI International on 9 of the 14 factors compared between the two stocks.

Akamai Technologies Company Profile

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.

CACI International Company Profile

CACI International Inc is a simulation technology company. The Company provides information solutions and services. The Company operates through two segments: domestic operations and international operations. It serves clients in the United States federal government and commercial markets, primarily throughout North America and internationally on behalf of the United States customers, as well as in the United Kingdom and the Netherlands. The Company’s primary customers are agencies and departments of the United States government. The Company’s domestic operations segment provides information solutions and services to its domestic customers in market areas, which include business systems; command and control; communications; cyber security, and enterprise information technology. Its international operations are conducted through its subsidiaries in Europe, including CACI Limited and CACI BV. Its international operations segment provides IT services, and data and software products.

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