Akamai Technologies, Inc. and Teradata Corporation are two prominent players in the software infrastructure sector, each driving innovation in cloud services and data analytics. Akamai specializes in secure content delivery and edge computing, while Teradata focuses on multi-cloud data platforms and enterprise analytics. Given their overlapping markets and technological advancements, this comparison will help you identify which company presents the most compelling investment opportunity in 2026. Let’s explore their strengths and risks to guide your portfolio choices.
Table of contents
Companies Overview
I will begin the comparison between Akamai Technologies and Teradata by providing an overview of these two companies and their main differences.
Akamai Technologies Overview
Akamai Technologies, Inc. specializes in cloud services aimed at securing, delivering, and optimizing content and business applications globally. The company focuses on protecting infrastructure, websites, and applications from cyber threats while enhancing performance through solutions such as web and mobile acceleration, media delivery, and edge computing. Founded in 1998 and headquartered in Cambridge, Massachusetts, Akamai operates in the software infrastructure industry with a strong presence in cybersecurity and content delivery.
Teradata Overview
Teradata Corporation provides a connected multi-cloud data platform for enterprise analytics, enabling clients to leverage data across their organizations. Its flagship product, Teradata Vantage, supports data ecosystem simplification and cloud migration. Teradata also offers business consulting and support services to help clients operationalize analytics and maintain infrastructure value. The company, established in 1979 and based in San Diego, California, serves various sectors including financial services and healthcare through a direct sales model.
Key similarities and differences
Both Akamai and Teradata operate within the technology sector, specifically in software infrastructure, and serve global markets with cloud-based solutions. Akamai’s business centers on cybersecurity, content delivery, and performance optimization, while Teradata focuses on enterprise data analytics and cloud platform services. Akamai has a larger workforce with over 10,800 employees compared to Teradata’s 5,700, reflecting their different scale and operational focuses within the technology landscape.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for Akamai Technologies, Inc. and Teradata Corporation for the fiscal year 2024.
| Metric | Akamai Technologies, Inc. | Teradata Corporation |
|---|---|---|
| Market Cap | 13.4B | 2.8B |
| Revenue | 3.99B | 1.75B |
| EBITDA | 1.26B | 293M |
| EBIT | 614M | 193M |
| Net Income | 505M | 114M |
| EPS | 3.34 | 1.18 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Akamai Technologies, Inc.
Akamai’s revenue trended upward, rising 24.8% overall but showing a modest 4.7% growth in 2024. Net income declined by 9.36% over the period, with a sharper 11.94% drop in net margin last year. Margins remain favorable, with a 59.39% gross margin and 12.65% net margin, yet operating expenses grew at the same pace as revenue, pressuring profitability in 2024.
Teradata Corporation
Teradata’s revenue decreased by 4.68% over five years, including a 4.53% drop in 2024. Despite this, net income showed a significant rebound last year with a 90.16% EPS increase and a 92.59% net margin growth. Margins stand at 60.46% gross and 6.51% net, reflecting improved operational efficiency and a 31.29% EBIT growth in 2024, despite long-term net income decline.
Which one has the stronger fundamentals?
Akamai exhibits stronger margins and steady revenue growth but faces declining net income and shrinking margins recently, signaling profitability challenges. Teradata demonstrates notable margin improvement and earnings growth in 2024, though with weaker revenue trends and lower absolute profitability. Teradata’s income statement shows a more favorable recent momentum, while Akamai’s fundamentals reflect stability with margin pressure.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Akamai Technologies, Inc. (AKAM) and Teradata Corporation (TDC) based on their most recent fiscal year data (2024).
| Ratios | Akamai Technologies, Inc. (AKAM) | Teradata Corporation (TDC) |
|---|---|---|
| ROE | 10.4% | 85.7% |
| ROIC | 4.7% | 16.9% |
| P/E | 28.7 | 26.3 |
| P/B | 3.0 | 22.6 |
| Current Ratio | 1.23 | 0.81 |
| Quick Ratio | 1.23 | 0.79 |
| D/E | 0.95 | 4.33 |
| Debt-to-Assets | 44.7% | 33.8% |
| Interest Coverage | 19.7 | 7.2 |
| Asset Turnover | 0.38 | 1.03 |
| Fixed Asset Turnover | 1.33 | 9.07 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Akamai Technologies, Inc.
Akamai shows a mixed ratio profile with favorable net margin and interest coverage, but weaker returns on invested capital and asset turnover, suggesting operational efficiency concerns. Its payout ratio is zero as it does not pay dividends, likely reinvesting earnings to support growth and innovation, with no share buybacks reported, reflecting a conservative capital return policy.
Teradata Corporation
Teradata displays strong return on equity and invested capital, supported by favorable asset turnover and interest coverage, but faces challenges with low liquidity ratios and high debt-to-equity. It also does not pay dividends, possibly focusing on reinvestment and R&D, while maintaining a higher debt level, which could imply increased financial risk despite operational strengths.
Which one has the best ratios?
Both companies exhibit a neutral overall ratios evaluation with strengths and weaknesses. Akamai has better liquidity and interest coverage, while Teradata excels in profitability and asset utilization but suffers from weaker liquidity and leverage ratios. The choice depends on weighing operational efficiency against financial stability and leverage considerations.
Strategic Positioning
This section compares the strategic positioning of Akamai Technologies and Teradata Corporation, including market position, key segments, and exposure to technological disruption:
Akamai Technologies, Inc.
- Large market cap of 13.4B USD in software infrastructure with moderate competitive pressure.
- Focuses on cloud services securing and optimizing internet content, media delivery, and edge compute solutions.
- Positioned in cloud security and content delivery, exposed to disruption through evolving cybersecurity and cloud tech.
Teradata Corporation
- Smaller market cap of 2.8B USD focused on enterprise analytics with moderate competitive pressure.
- Provides multi-cloud data platform and consulting services targeting enterprise analytics across sectors.
- Exposure to cloud migration and ecosystem simplification technologies impacting data platform demand.
Akamai Technologies, Inc. vs Teradata Corporation Positioning
Akamai offers diversified cloud infrastructure services including cybersecurity and edge computing, whereas Teradata concentrates on multi-cloud data platforms and analytics consulting. Akamai’s broad cloud security scope contrasts with Teradata’s focused enterprise analytics and consulting approach.
Which has the best competitive advantage?
Teradata shows a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. Akamai’s declining ROIC and value destruction suggest a very unfavorable moat and weaker competitive advantage.
Stock Comparison
The stock price movements over the past 12 months reveal bearish trends for both Akamai Technologies, Inc. and Teradata Corporation, despite recent accelerated recoveries from November 2025 to January 2026.
Trend Analysis
Akamai Technologies, Inc. experienced a bearish trend over the past year with a price decline of -13.57%, accompanied by accelerating downward momentum and high volatility, ranging from 70.53 to 111.0.
Teradata Corporation also showed a bearish trend during the same period, with a larger price drop of -21.26%, accelerating downward trend, and lower volatility compared to Akamai, with prices between 19.73 and 38.67.
Comparing both, Akamai’s stock outperformed Teradata’s, delivering a smaller negative return and demonstrating stronger recent buyer dominance and volume growth.
Target Prices
The current analyst consensus indicates moderate upside potential for these technology infrastructure companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Akamai Technologies, Inc. | 115 | 89 | 104.8 |
| Teradata Corporation | 35 | 27 | 31 |
Analysts expect Akamai’s shares to appreciate from the current $93.49 toward a consensus target of $104.8, while Teradata’s stock, now at $29.77, is projected to reach around $31, suggesting modest growth potential.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Akamai Technologies, Inc. and Teradata Corporation:
Rating Comparison
Akamai Technologies, Inc. Rating
- Rating: B, considered very favorable overall by analysts.
- Discounted Cash Flow Score: 5, very favorable, indicating strong valuation.
- ROE Score: 3, moderate, reflecting average efficiency in generating profit.
- ROA Score: 3, moderate use of assets to generate earnings.
- Debt To Equity Score: 1, very unfavorable, indicating high financial risk.
- Overall Score: 3, moderate, reflecting average overall financial standing.
Teradata Corporation Rating
- Rating: B+, also rated very favorable, slightly higher than Akamai.
- Discounted Cash Flow Score: 4, favorable but below Akamai’s score.
- ROE Score: 5, very favorable, showing high profitability from equity.
- ROA Score: 4, favorable, better asset utilization than Akamai.
- Debt To Equity Score: 1, also very unfavorable, similar financial risk.
- Overall Score: 3, moderate, same overall financial standing as Akamai.
Which one is the best rated?
Teradata holds a higher rating (B+) compared to Akamai’s B, with superior ROE and ROA scores indicating more efficient profit generation and asset use. Both share very unfavorable debt-to-equity scores and identical overall scores, showing similar financial risk levels.
Scores Comparison
Here is a comparison of the scores for Akamai Technologies and Teradata Corporation:
AKAM Scores
- Altman Z-Score: 2.46, in the grey zone, indicating moderate bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
TDC Scores
- Altman Z-Score: 0.81, in the distress zone, indicating high bankruptcy risk.
- Piotroski Score: 8, classified as very strong financial health.
Which company has the best scores?
Teradata has a lower Altman Z-Score indicating higher bankruptcy risk but a higher Piotroski Score compared to Akamai. Akamai’s Altman Z-Score suggests moderate risk, while Teradata’s Piotroski Score shows slightly stronger financial health.
Grades Comparison
Here is the detailed comparison of the latest grades assigned to Akamai Technologies, Inc. and Teradata Corporation by reputable grading companies:
Akamai Technologies, Inc. Grades
The table below summarizes recent grading actions and new grades from recognized financial institutions for Akamai Technologies, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Neutral | 2026-01-16 |
| Morgan Stanley | Upgrade | Overweight | 2026-01-12 |
| Scotiabank | Maintain | Sector Outperform | 2026-01-09 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Piper Sandler | Maintain | Neutral | 2026-01-05 |
| Keybanc | Upgrade | Overweight | 2025-12-15 |
| TD Cowen | Maintain | Hold | 2025-11-13 |
| Citigroup | Maintain | Neutral | 2025-11-11 |
| Scotiabank | Maintain | Sector Outperform | 2025-11-07 |
| Piper Sandler | Maintain | Neutral | 2025-11-07 |
Akamai’s grades show a stable to positive trend, with multiple upgrades from Underweight to Overweight and consistent Sector Outperform and Neutral ratings.
Teradata Corporation Grades
The following table presents recent grades and actions from reliable grading companies for Teradata Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Underweight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Citizens | Upgrade | Market Outperform | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-11-05 |
| TD Cowen | Maintain | Hold | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Guggenheim | Maintain | Buy | 2025-05-07 |
| Barclays | Maintain | Underweight | 2025-04-21 |
Teradata’s ratings exhibit mixed signals with several Underweight ratings balanced by Outperform and Market Outperform grades, indicating cautious optimism.
Which company has the best grades?
Akamai Technologies has generally received more positive upgrades and consistent Sector Outperform ratings compared to Teradata’s mixed Underweight and Outperform grades. This disparity could influence investor sentiment and portfolio weighting decisions based on perceived momentum and analyst confidence.
Strengths and Weaknesses
Below is a comparison table highlighting the key strengths and weaknesses of Akamai Technologies, Inc. (AKAM) and Teradata Corporation (TDC) based on the most recent financial and strategic data available.
| Criterion | Akamai Technologies, Inc. (AKAM) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Moderate; primarily focused on content delivery and cloud security services with $3.99B revenue in 2024 | High; diversified across consulting, recurring products, services, and subscription software totaling over $3.7B revenue in 2024 |
| Profitability | Moderate net margin (12.65%), ROE neutral (10.35%), and ROIC unfavorable (4.74%) | Moderate net margin (6.51%), strong ROE (85.71%), and favorable ROIC (16.89%) |
| Innovation | Lower innovation implied by declining ROIC and value destruction trend | Strong innovation indicated by growing ROIC and durable competitive advantage |
| Global presence | Established global network infrastructure but less diversified revenue streams | Broad global service footprint with multiple business segments and international exposure |
| Market Share | Strong in CDN and cloud security niche but facing profitability challenges | Growing market presence in data analytics and enterprise services with increasing profitability |
Key takeaways: Teradata demonstrates a stronger economic moat with growing profitability and diversified revenue streams, while Akamai faces challenges in maintaining value creation despite a solid market position. Investors should weigh Teradata’s durable advantage against Akamai’s need for operational improvements.
Risk Analysis
Below is a summary table outlining key risk metrics for Akamai Technologies, Inc. (AKAM) and Teradata Corporation (TDC) based on the latest 2024 data:
| Metric | Akamai Technologies, Inc. (AKAM) | Teradata Corporation (TDC) |
|---|---|---|
| Market Risk | Beta 0.685 (moderate volatility) | Beta 0.57 (lower volatility) |
| Debt Level | Debt-to-Equity 0.95 (neutral) | Debt-to-Equity 4.33 (very high risk) |
| Regulatory Risk | Moderate, tech sector compliance | Moderate, multi-cloud/data regulations |
| Operational Risk | Moderate, relies on cloud infrastructure | Moderate, complex data platform integration |
| Environmental Risk | Low, software-focused operations | Low, software-focused operations |
| Geopolitical Risk | Moderate, global internet services | Moderate, global enterprise clients |
The most impactful risks are Teradata’s high debt level, placing it in the distress zone with an Altman Z-Score of 0.81, signaling bankruptcy risk, while Akamai stands in the grey zone with a more moderate financial risk. Both companies face moderate regulatory and operational risks typical of the tech infrastructure sector, but Teradata’s leverage makes it more vulnerable in volatile markets. Caution and diversified risk management are advised when considering investments in these stocks.
Which Stock to Choose?
Akamai Technologies, Inc. shows stable income with a 4.7% revenue growth in 2024 but declining net margin and EPS. Its financial ratios are mixed, with favorable net margin and interest coverage but unfavorable ROIC and asset turnover. Debt levels are moderate, and it holds a very favorable overall rating “B”.
Teradata Corporation experienced a revenue decline of 4.53% in 2024 but shows strong EBIT and net margin growth. Its financial ratios are polarized, with favorable ROE, ROIC, and asset turnover but unfavorable leverage and liquidity ratios. It has a very favorable rating “B+” overall.
For investors prioritizing durable competitive advantage and value creation, Teradata’s very favorable moat and improving income statement might appear more attractive. Conversely, those valuing stability and moderate financial risk could see Akamai’s balanced rating and income quality as preferable.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Akamai Technologies, Inc. and Teradata Corporation to enhance your investment decisions:
