Financial Review: Akamai Technologies (NASDAQ:AKAM) versus CyberAgent (OTCMKTS:CYGIY)

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

Risk & Volatility

Akamai Technologies has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

94.3% of Akamai Technologies shares are held by institutional investors. 2.0% of Akamai Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Akamai Technologies and CyberAgent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akamai Technologies	2	9	10	0	2.38
CyberAgent	0	0	0	0	0.00

Akamai Technologies presently has a consensus price target of $108.84, indicating a potential upside of 8.96%. Given Akamai Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Akamai Technologies is more favorable than CyberAgent.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Akamai Technologies	10.74%	13.86%	6.07%
CyberAgent	4.31%	16.76%	8.48%

Valuation and Earnings

This table compares Akamai Technologies and CyberAgent”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akamai Technologies	$4.21 billion	3.44	$452.03 million	$3.08	32.43
CyberAgent	$5.86 billion	0.73	$212.18 million	$0.25	16.80

Akamai Technologies has higher earnings, but lower revenue than CyberAgent. CyberAgent 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 CyberAgent on 11 of the 14 factors compared between the two stocks.

About Akamai Technologies

Akamai Technologies, Inc. provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and cloud computing services, such as compute, storage, networking, database, and container management services to build, deploy, and secure applications and workloads. In addition, the company offers content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through various channel partners. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.