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AKAM or SHOP: Which Is the Better Value Stock Right Now?
ZACKSยท2025-11-07 17:40

Core Insights - Akamai Technologies (AKAM) is currently viewed as a better value opportunity compared to Shopify (SHOP) based on various financial metrics [1][7] Valuation Metrics - AKAM has a forward P/E ratio of 10.88, significantly lower than SHOP's forward P/E of 107.01 [5] - The PEG ratio for AKAM is 2.22, while SHOP's PEG ratio stands at 4.33, indicating that AKAM is more reasonably priced relative to its expected earnings growth [5] - AKAM's P/B ratio is 2.39, compared to SHOP's P/B of 16.21, further suggesting that AKAM is undervalued [6] Earnings Outlook - AKAM is currently exhibiting an improving earnings outlook, which is a positive indicator in the Zacks Rank model [3][7] - The Zacks Rank for AKAM is 2 (Buy), while SHOP holds a Zacks Rank of 3 (Hold), reflecting a more favorable earnings estimate revision trend for AKAM [3]