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

Insider and Institutional Ownership

88.3% of Fair Isaac shares are owned by institutional investors. Comparatively, 86.0% of Akamai Technologies shares are owned by institutional investors. 5.8% of Fair Isaac shares are owned by company insiders. Comparatively, 3.2% of Akamai Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Fair Isaac has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Akamai Technologies has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Fair Isaac 13.12% 39.61% 11.53%
Akamai Technologies 6.74% 10.63% 7.35%

Valuation & Earnings

This table compares Fair Isaac and Akamai Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fair Isaac $932.17 million 6.46 $128.25 million $3.98 51.95
Akamai Technologies $2.50 billion 4.27 $218.32 million $1.90 33.16

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

Analyst Ratings

This is a summary of current recommendations for Fair Isaac and Akamai Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fair Isaac 0 2 1 0 2.33
Akamai Technologies 0 8 11 0 2.58

Fair Isaac currently has a consensus target price of $201.33, suggesting a potential downside of 2.62%. Akamai Technologies has a consensus target price of $78.95, suggesting a potential upside of 25.32%. Given Akamai Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Akamai Technologies is more favorable than Fair Isaac.

Summary

Fair Isaac beats Akamai Technologies on 9 of the 14 factors compared between the two stocks.

Fair Isaac Company Profile

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions. The company offers analytical solutions, credit scoring, and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations, and public agencies. It operates through three segments: Applications, Scores, and Decision Management Software. The Applications segment offers pre-configured decision management applications designed for various business problem or process, such as marketing, account origination, customer management, fraud, collection, and insurance claims management, as well as associated professional services. The Scores segment provides business-to-business scoring solutions and services, including myFICO solutions for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as associated professional services. The Decision Management Software segment offers analytic and decision management software tools, as well as professional services. The company offers a portfolio of applications, tools, and services in the cloud to clients through its FICO Analytic Cloud, FICO Decision Management Suite, and FICO Decision Management Platform. Fair Isaac Corporation markets its products and services primarily through its direct sales organization; indirect channels; subsidiary sales organizations; and resellers and independent distributors, as well as online. It operates in the United States, the United Kingdom, and internationally. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in San Jose, California.

Akamai Technologies Company Profile

Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The company offers Web and mobile performance solutions, such as Ion, a situational performance solution; Dynamic Site Accelerator that helps in consistent Website performance; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of Websites in a pre-production environment; mPulse that provides real-time Website performance data to provide insight about end-user experiences on a Website; and Global Traffic Management, a fault-tolerant solution. It also provides cloud security solutions, including Web Application Protector to safeguard Web assets from Web application and distributed denial of service; Kona Site Defender, a cloud computing security solution; Bot Manager Premier to identify bots; Fast DNS, which translates human-readable domain names into numerical IP addresses; Prolexic Routed to protect Web- and IP-based applications; and Client Reputation for protection against DDoS and Web application attacks. In addition, the company offers enterprise security solutions, including Enterprise Application Access that enables remote access to applications; and Enterprise Threat Protector to enable enterprise security teams to identify, block, and mitigate targeted threats. Further, it provides network operator solutions, including Aura Licensed CDN, Aura Managed CDN, and Intelligent DNS solutions, as well as professional services and solutions; media delivery solutions, such as adaptive delivery, download delivery, infinite media acceleration, media services, and media analytics solutions; and NetStorage, a cloud storage solution. The company sells its solutions through direct sales and service organization; and channel partners. Akamai Technologies, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

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