Critical Analysis: Rimini Street (NASDAQ:RMNI) and Akamai Technologies (NASDAQ:AKAM)

Akamai Technologies (NASDAQ:AKAM) and Rimini Street (NASDAQ:RMNI) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

94.3% of Akamai Technologies shares are held by institutional investors. Comparatively, 73.8% of Rimini Street shares are held by institutional investors. 2.3% of Akamai Technologies shares are held by insiders. Comparatively, 42.0% of Rimini Street shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Akamai Technologies and Rimini Street, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akamai Technologies	2	9	12	0	2.43
Rimini Street	0	3	1	0	2.25

Akamai Technologies presently has a consensus price target of $141.38, indicating a potential upside of 20.17%. Rimini Street has a consensus price target of $5.00, indicating a potential upside of 1.83%. Given Akamai Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe Akamai Technologies is more favorable than Rimini Street.

Profitability

This table compares Akamai Technologies and Rimini Street’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akamai Technologies	9.51%	11.32%	4.47%
Rimini Street	1.69%	-53.91%	3.24%

Volatility & Risk

Akamai Technologies has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Rimini Street has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Valuation & Earnings

This table compares Akamai Technologies and Rimini Street”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akamai Technologies	$4.21 billion	4.06	$452.03 million	$2.78	42.32
Rimini Street	$421.54 million	1.09	$37.10 million	$0.08	61.38

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

Summary

Akamai Technologies beats Rimini Street on 11 of the 14 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 Rimini Street

Rimini Street, Inc. provides enterprise software products, services, and support. The company engages in the provision of support services for Oracle and SAP enterprise software products. It also provides Rimini ONE, an outsourcing option that offers a set of unified and integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize its clients’ application, database, and technology enterprise software; Rimini Support, a mission-critical support for Oracle, SAP, proprietary and open-source database, and technology software; Rimini Manage, a suite of managed services for application and database software; Rimini Protect, a suite of personalized software security services and solutions; and Rimini Connect, a suite of managed interoperability solutions for browsers, operating systems, and email systems. In addition, the company offers Rimini Watch, a suite of observability solutions that include monitoring and system health check solutions; Rimini Consult, a suite of professional services for clients’ enterprise software customization, configuration, implementation, integration, interoperability, migration, staff augmentation, and other project needs; and Rimini Custom, a program that expands support and related services to a broader portfolio of enterprise software. The company serves Fortune 500 companies and Fortune Global 100 companies across various industries. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was incorporated in 2005 and is headquartered in Las Vegas, Nevada.