Akamai Technologies (NASDAQ:AKAM – Get Free Report) and Xunlei (NASDAQ:XNET – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Akamai Technologies has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Xunlei has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Akamai Technologies and Xunlei, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Akamai Technologies | 5 | 9 | 7 | 1 | 2.18 |
| Xunlei | 0 | 1 | 0 | 0 | 2.00 |
Earnings and Valuation
This table compares Akamai Technologies and Xunlei”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Akamai Technologies | $3.99 billion | 2.65 | $504.92 million | $2.82 | 26.17 |
| Xunlei | $324.40 million | 1.77 | $1.22 million | $11.38 | 0.81 |
Akamai Technologies has higher revenue and earnings than Xunlei. Xunlei is trading at a lower price-to-earnings ratio than Akamai Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Akamai Technologies and Xunlei’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Akamai Technologies | 10.40% | 14.26% | 6.50% |
| Xunlei | 202.62% | 4.50% | 3.35% |
Insider and Institutional Ownership
94.3% of Akamai Technologies shares are owned by institutional investors. Comparatively, 5.1% of Xunlei shares are owned by institutional investors. 2.0% of Akamai Technologies shares are owned by company insiders. Comparatively, 21.7% of Xunlei shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Akamai Technologies beats Xunlei on 11 of the 15 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 Xunlei
Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.
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