Akamai Technologies (NASDAQ:AKAM) versus Riskified (NYSE:RSKD) Head-To-Head Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Akamai Technologies	16.12%	15.02%	7.10%
Riskified	-17.28%	-9.55%	-7.86%

Institutional and Insider Ownership

94.3% of Akamai Technologies shares are held by institutional investors. Comparatively, 59.0% of Riskified shares are held by institutional investors. 1.8% of Akamai Technologies shares are held by insiders. Comparatively, 17.4% of Riskified shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Akamai Technologies and Riskified, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akamai Technologies	1	7	11	1	2.60
Riskified	1	5	2	0	2.13

Akamai Technologies presently has a consensus price target of $114.44, indicating a potential upside of 16.23%. Riskified has a consensus price target of $6.75, indicating a potential upside of 7.14%. Given Akamai Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Akamai Technologies is more favorable than Riskified.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akamai Technologies	$3.81 billion	3.88	$547.63 million	$4.02	24.18
Riskified	$297.61 million	3.76	-$59.03 million	($0.31)	-20.26

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

Volatility and Risk

Akamai Technologies has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Riskified has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

Akamai Technologies beats Riskified on 12 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 Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.