Apple Inc. (AAPL) vs Akamai Technologies, Inc. (AKAM): Which Is the Better Buy in 2026?
As of 2026-09-17, AAPL is overvalued at $332, with a DCF intrinsic value of $165 and a margin of safety of -102%. AKAM is overvalued at $104, with an intrinsic value of $24 and a margin of safety of -333%. Of the two, AAPL has the wider margin of safety.
Risks
- ⚠FCF yield of 2.2% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠PEG ratio of 2.67 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠5 insider sales totaling $2.2M with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠Trailing P/E of 37.9x is 31% above the historical average of 28.8x — the stock trades at a premium to its own history.
- ⚠Net debt/EBITDA of 5.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
- ⚠20 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $332?
What growth rate is the market pricing in at $104?
The market implies +19.2% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +13.0%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Insufficient data for Economic Moat Score calculation (requires 3+ years).
Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Forensic Accounting
Learn more →Insufficient data for Beneish M-Score calculation (requires 2+ years).
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is optimistic — be cautious and ensure you have a margin of safety"
"Market is pessimistic — investigate whether fears are temporary or structural"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: AAPL vs AKAM
Is Apple Inc. or Akamai Technologies, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, AAPL trades at a -101.5% margin of safety (intrinsic value $165 vs. price $332), compared to AKAM's -332.6% margin of safety (intrinsic $24 vs. $104).
Which company has better free cash flow, Apple Inc. or Akamai Technologies, Inc.?▼
Akamai Technologies, Inc. (AKAM) generates a 4.7% free cash flow yield, compared to Apple Inc.'s 2.2%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Apple Inc. or Akamai Technologies, Inc.?▼
AAPL earns 62.7% ROIC versus AKAM's 1.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.