Head-To-Head Comparison: DoorDash (NASDAQ:DASH) vs. Akamai Technologies (NASDAQ:AKAM)

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

Institutional and Insider Ownership

94.3% of Akamai Technologies shares are owned by institutional investors. Comparatively, 90.6% of DoorDash shares are owned by institutional investors. 2.0% of Akamai Technologies shares are owned by company insiders. Comparatively, 5.8% of DoorDash shares are owned by company 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.

Profitability

This table compares Akamai Technologies and DoorDash’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%
DoorDash	6.82%	10.15%	5.49%

Earnings and Valuation

This table compares Akamai Technologies and DoorDash”s revenue, earnings per share and valuation.

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

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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Akamai Technologies and DoorDash, as provided by MarketBeat.com.

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

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

Risk & Volatility

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

Summary

DoorDash beats Akamai Technologies on 10 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 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.