Akamai Technologies (NASDAQ:AKAM) and Envestnet (NYSE:ENV) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
85.7% of Akamai Technologies shares are held by institutional investors. Comparatively, 96.3% of Envestnet shares are held by institutional investors. 3.2% of Akamai Technologies shares are held by company insiders. Comparatively, 5.5% of Envestnet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings and price targets for Akamai Technologies and Envestnet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Akamai Technologies presently has a consensus target price of $79.84, suggesting a potential upside of 28.84%. Envestnet has a consensus target price of $62.40, suggesting a potential upside of 21.07%. Given Akamai Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Akamai Technologies is more favorable than Envestnet.
Valuation & Earnings
This table compares Akamai Technologies and Envestnet’s top-line 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||4.20||$218.32 million||$1.90||32.62|
|Envestnet||$683.68 million||3.42||-$3.28 million||$0.88||58.57|
Akamai Technologies has higher revenue and earnings than Envestnet. Akamai Technologies is trading at a lower price-to-earnings ratio than Envestnet, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Akamai Technologies has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Envestnet has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.
This table compares Akamai Technologies and Envestnet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Akamai Technologies beats Envestnet on 9 of the 14 factors compared between the two stocks.
Akamai Technologies Company Profile
Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The company offers Web and mobile performance solutions, such as Ion, a situational performance solution; Dynamic Site Accelerator that helps in consistent Website performance; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of Websites in a pre-production environment; mPulse that provides real-time Website performance data to provide insight about end-user experiences on a Website; and Global Traffic Management, a fault-tolerant solution. It also provides cloud security solutions, including Web Application Protector to safeguard Web assets from Web application and distributed denial of service; Kona Site Defender, a cloud computing security solution; Bot Manager Premier to identify bots; Fast DNS, which translates human-readable domain names into numerical IP addresses; Prolexic Routed to protect Web- and IP-based applications; and Client Reputation for protection against DDoS and Web application attacks. In addition, the company offers enterprise security solutions, including Enterprise Application Access that enables remote access to applications; and Enterprise Threat Protector to enable enterprise security teams to identify, block, and mitigate targeted threats. Further, it provides network operator solutions, including Aura Licensed CDN, Aura Managed CDN, and Intelligent DNS solutions, as well as professional services and solutions; media delivery solutions, such as adaptive delivery, download delivery, infinite media acceleration, media services, and media analytics solutions; and NetStorage, a cloud storage solution. The company sells its solutions through direct sales and service organization; and channel partners. Akamai Technologies, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.
Envestnet Company Profile
Envestnet, Inc., together with its subsidiaries, provides intelligent systems for wealth management and financial wellness in the United States and internationally. It operates through Envestnet and Envestnet | Yodlee business segments. The company's product and services suites include Envestnet | Enterprise, which provides an end-to-end open architecture wealth management platform, as well as sells data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Tamarac that provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; Envestnet | Retirement Solutions, which offer a suite of services for advisor-sold retirement plans; and Envestnet | Portfolio Management Consultants that provide research, due diligence, and consulting services to assist advisors in creating investment solutions for their clients, and patented portfolio overlay and tax optimization services. It also provides Envestnet | Yodlee data aggregation and data analytics platform, which offers cloud-based innovation for digital financial services. The company primarily serves banks, wealth management and brokerage firms, Internet services companies, and registered investment advisers. Envestnet, Inc. was founded in 1999 and is headquartered in Chicago, Illinois.
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