Similarweb (NYSE:SMWB – Get Free Report) and Alkami Technology (NASDAQ:ALKT – Get Free Report) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
57.6% of Similarweb shares are held by institutional investors. Comparatively, 55.0% of Alkami Technology shares are held by institutional investors. 17.1% of Alkami Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Similarweb and Alkami Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Similarweb | -7.37% | -19.81% | -1.74% |
| Alkami Technology | -7.24% | -4.75% | -2.07% |
Volatility and Risk
Similarweb has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Similarweb and Alkami Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Similarweb | 1 | 5 | 5 | 0 | 2.36 |
| Alkami Technology | 2 | 6 | 1 | 0 | 1.89 |
Similarweb presently has a consensus target price of $9.71, suggesting a potential upside of 9.27%. Alkami Technology has a consensus target price of $17.60, suggesting a potential upside of 30.82%. Given Alkami Technology’s higher possible upside, analysts plainly believe Alkami Technology is more favorable than Similarweb.
Valuation & Earnings
This table compares Similarweb and Alkami Technology”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Similarweb | $282.60 million | 2.76 | -$32.94 million | ($0.25) | -35.56 |
| Alkami Technology | $443.64 million | 3.25 | -$47.65 million | ($0.34) | -39.57 |
Similarweb has higher earnings, but lower revenue than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than Similarweb, indicating that it is currently the more affordable of the two stocks.
Summary
Similarweb beats Alkami Technology on 8 of the 14 factors compared between the two stocks.
About Similarweb
Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies. It also provides sales intelligence solutions for its customers to access relevant buying signals and digital insights of their customers to generate leads quickly; and shopper intelligence solutions for its customers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process. In addition, the company offers investor intelligence solutions for its customers to access an end-to-end view of market, sector, and company performance to ideate and monitor investment opportunities; forecast market performance; and perform due diligence. Further, it provides data-as-a-service and advisory services. The company serves retail, consumer packaged goods, consumer finance, consultancies, marketing and advertising agencies, media and publishers, business-to-business software, payment processors, travel, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Givatayim, Israel.
About Alkami Technology
Alkami Technology, Inc. offers cloud-based digital banking solutions in the United States. The company's Alkami Platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, and multi-tenant architecture. It serves community, regional, super-regional credit unions, and banks. The company was founded in 2009 and is headquartered in Plano, Texas.
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