Comparing Akamai Technologies (NASDAQ:AKAM) and DoorDash (NASDAQ:DASH)

DoorDash (NASDAQ:DASH) and Akamai Technologies (NASDAQ:AKAM) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

90.6% of DoorDash shares are held by institutional investors. Comparatively, 94.3% of Akamai Technologies shares are held by institutional investors. 5.8% of DoorDash shares are held by insiders. Comparatively, 2.0% of Akamai Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares DoorDash and Akamai Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$13.72 billion	5.17	$935.00 million	$2.12	77.67
Akamai Technologies	$4.21 billion	3.38	$452.03 million	$3.08	32.06

DoorDash has higher revenue and earnings than Akamai Technologies. Akamai Technologies is trading at a lower price-to-earnings ratio than DoorDash, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

DoorDash has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Akamai Technologies has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for DoorDash and Akamai Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	9	26	1	2.78
Akamai Technologies	2	9	10	0	2.38

DoorDash presently has a consensus target price of $264.74, indicating a potential upside of 60.78%. Akamai Technologies has a consensus target price of $108.84, indicating a potential upside of 10.22%. Given DoorDash’s stronger consensus rating and higher possible upside, research analysts clearly believe DoorDash is more favorable than Akamai Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoorDash	6.82%	10.15%	5.49%
Akamai Technologies	10.74%	13.86%	6.07%

Summary

DoorDash beats Akamai Technologies on 10 of the 15 factors compared between the two stocks.

About DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.

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.