Software - Infrastructure
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GDDY vs AKAM
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Infrastructure
GDDY vs AKAM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Infrastructure | Software - Infrastructure |
| Market Cap | $11.97B | $17.18B |
| Revenue (TTM) | $5.02B | $4.27B |
| Net Income (TTM) | $870M | $435M |
| Gross Margin | 61.8% | 57.2% |
| Operating Margin | 17.6% | 13.7% |
| Forward P/E | 12.9x | 17.0x |
| Total Debt | $3.86B | $6.91B |
| Cash & Equiv. | $1.08B | $930M |
GDDY vs AKAM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| GoDaddy Inc. (GDDY) | 100 | 116.2 | +16.2% |
| Akamai Technologies… (AKAM) | 100 | 110.3 | +10.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: GDDY vs AKAM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
GDDY carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.42
- Rev growth 8.3%, EPS growth -3.4%, 3Y rev CAGR 6.6%
- 197.1% 10Y total return vs AKAM's 132.7%
AKAM is the clearest fit if your priority is momentum.
- +40.8% vs GDDY's -51.0%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 8.3% revenue growth vs AKAM's 5.4% | |
| Value | Lower P/E (12.9x vs 17.0x) | |
| Quality / Margins | 17.3% margin vs AKAM's 10.2% | |
| Stability / Safety | Beta 0.42 vs AKAM's 0.73 | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +40.8% vs GDDY's -51.0% | |
| Efficiency (ROA) | 10.7% ROA vs AKAM's 3.9%, ROIC 26.2% vs 4.7% |
GDDY vs AKAM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
GDDY vs AKAM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
GDDY leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
GDDY and AKAM operate at a comparable scale, with $5.0B and $4.3B in trailing revenue. GDDY is the more profitable business, keeping 17.3% of every revenue dollar as net income compared to AKAM's 10.2%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $5.0B | $4.3B |
| EBITDAEarnings before interest/tax | $1.1B | $1.1B |
| Net IncomeAfter-tax profit | $870M | $435M |
| Free Cash FlowCash after capex | $1.6B | $765M |
| Gross MarginGross profit ÷ Revenue | +61.8% | +57.2% |
| Operating MarginEBIT ÷ Revenue | +17.6% | +13.7% |
| Net MarginNet income ÷ Revenue | +17.3% | +10.2% |
| FCF MarginFCF ÷ Revenue | +32.7% | +17.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.1% | +5.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +6.0% | -13.4% |
Valuation Metrics
GDDY leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 14.4x trailing earnings, GDDY trades at a 62% valuation discount to AKAM's 38.0x P/E. On an enterprise value basis, GDDY's 11.0x EV/EBITDA is more attractive than AKAM's 17.3x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $12.0B | $17.2B |
| Enterprise ValueMkt cap + debt − cash | $14.8B | $23.2B |
| Trailing P/EPrice ÷ TTM EPS | 14.41x | 38.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.89x | 17.02x |
| PEG RatioP/E ÷ EPS growth rate | — | 7.00x |
| EV / EBITDAEnterprise value multiple | 11.03x | 17.32x |
| Price / SalesMarket cap ÷ Revenue | 2.42x | 4.08x |
| Price / BookPrice ÷ Book value/share | 56.82x | 3.45x |
| Price / FCFMarket cap ÷ FCF | 7.60x | 24.57x |
Profitability & Efficiency
GDDY leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
GDDY delivers a 3.7% return on equity — every $100 of shareholder capital generates $4 in annual profit, vs $9 for AKAM. AKAM carries lower financial leverage with a 1.39x debt-to-equity ratio, signaling a more conservative balance sheet compared to GDDY's 17.96x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +3.7% | +9.1% |
| ROA (TTM)Return on assets | +10.7% | +3.9% |
| ROICReturn on invested capital | +26.2% | +4.7% |
| ROCEReturn on capital employed | +21.4% | +6.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 17.96x | 1.39x |
| Net DebtTotal debt minus cash | $2.8B | $6.0B |
| Cash & Equiv.Liquid assets | $1.1B | $930M |
| Total DebtShort + long-term debt | $3.9B | $6.9B |
| Interest CoverageEBIT ÷ Interest expense | 10.89x | 8.85x |
Total Returns (Dividends Reinvested)
AKAM leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in GDDY five years ago would be worth $11,072 today (with dividends reinvested), compared to $10,531 for AKAM. Over the past 12 months, AKAM leads with a +40.8% total return vs GDDY's -51.0%. The 3-year compound annual growth rate (CAGR) favors AKAM at 13.7% vs GDDY's 8.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -24.3% | +37.1% |
| 1-Year ReturnPast 12 months | -51.0% | +40.8% |
| 3-Year ReturnCumulative with dividends | +28.1% | +47.1% |
| 5-Year ReturnCumulative with dividends | +10.7% | +5.3% |
| 10-Year ReturnCumulative with dividends | +197.1% | +132.7% |
| CAGR (3Y)Annualised 3-year return | +8.6% | +13.7% |
Risk & Volatility
Evenly matched — GDDY and AKAM each lead in 1 of 2 comparable metrics.
Risk & Volatility
GDDY is the less volatile stock with a 0.42 beta — it tends to amplify market swings less than AKAM's 0.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AKAM currently trades 95.5% from its 52-week high vs GDDY's 47.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.42x | 0.73x |
| 52-Week HighHighest price in past year | $190.50 | $122.22 |
| 52-Week LowLowest price in past year | $73.06 | $69.78 |
| % of 52W HighCurrent price vs 52-week peak | +47.1% | +95.5% |
| RSI (14)Momentum oscillator 0–100 | 49.3 | 70.9 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 4.7M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates GDDY as "Buy" and AKAM as "Hold". Consensus price targets imply 26.2% upside for GDDY (target: $113) vs -4.7% for AKAM (target: $111).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $113.29 | $111.18 |
| # AnalystsCovering analysts | 38 | 52 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +13.4% | +4.7% |
GDDY leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). AKAM leads in 1 (Total Returns). 1 tied.
GDDY vs AKAM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is GDDY or AKAM a better buy right now?
For growth investors, GoDaddy Inc.
(GDDY) is the stronger pick with 8. 3% revenue growth year-over-year, versus 5. 4% for Akamai Technologies, Inc. (AKAM). GoDaddy Inc. (GDDY) offers the better valuation at 14. 4x trailing P/E (12. 9x forward), making it the more compelling value choice. Analysts rate GoDaddy Inc. (GDDY) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — GDDY or AKAM?
On trailing P/E, GoDaddy Inc.
(GDDY) is the cheapest at 14. 4x versus Akamai Technologies, Inc. at 38. 0x. On forward P/E, GoDaddy Inc. is actually cheaper at 12. 9x.
03Which is the better long-term investment — GDDY or AKAM?
Over the past 5 years, GoDaddy Inc.
(GDDY) delivered a total return of +10. 7%, compared to +5. 3% for Akamai Technologies, Inc. (AKAM). Over 10 years, the gap is even starker: GDDY returned +197. 1% versus AKAM's +132. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — GDDY or AKAM?
By beta (market sensitivity over 5 years), GoDaddy Inc.
(GDDY) is the lower-risk stock at 0. 42β versus Akamai Technologies, Inc. 's 0. 73β — meaning AKAM is approximately 73% more volatile than GDDY relative to the S&P 500. On balance sheet safety, Akamai Technologies, Inc. (AKAM) carries a lower debt/equity ratio of 139% versus 18% for GoDaddy Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — GDDY or AKAM?
By revenue growth (latest reported year), GoDaddy Inc.
(GDDY) is pulling ahead at 8. 3% versus 5. 4% for Akamai Technologies, Inc. (AKAM). On earnings-per-share growth, the picture is similar: GoDaddy Inc. grew EPS -3. 4% year-over-year, compared to -6. 1% for Akamai Technologies, Inc.. Over a 3-year CAGR, GDDY leads at 6. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — GDDY or AKAM?
GoDaddy Inc.
(GDDY) is the more profitable company, earning 17. 7% net margin versus 10. 7% for Akamai Technologies, Inc. — meaning it keeps 17. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GDDY leads at 22. 9% versus 14. 9% for AKAM. At the gross margin level — before operating expenses — GDDY leads at 61. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is GDDY or AKAM more undervalued right now?
On forward earnings alone, GoDaddy Inc.
(GDDY) trades at 12. 9x forward P/E versus 17. 0x for Akamai Technologies, Inc. — 4. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GDDY: 26. 2% to $113. 29.
08Which pays a better dividend — GDDY or AKAM?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is GDDY or AKAM better for a retirement portfolio?
For long-horizon retirement investors, GoDaddy Inc.
(GDDY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 42), +197. 1% 10Y return). Both have compounded well over 10 years (GDDY: +197. 1%, AKAM: +132. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between GDDY and AKAM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: GDDY is a mid-cap deep-value stock; AKAM is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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