Contrasting Alkami Technology (ALKT) and Its Rivals

Alkami Technology (NASDAQ:ALKT) is one of 954 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Alkami Technology to related companies based on the strength of its dividends, valuation, institutional ownership, risk, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares Alkami Technology and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alkami Technology	$511.68 million	-$47.65 million	-41.35
Alkami Technology Competitors	$1.86 billion	$386.16 million	113.33

Alkami Technology’s competitors have higher revenue and earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

55.0% of Alkami Technology shares are held by institutional investors. Comparatively, 41.7% of shares of all “Software” companies are held by institutional investors. 17.1% of Alkami Technology shares are held by company insiders. Comparatively, 20.0% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Alkami Technology and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-7.24%	-4.75%	-2.07%
Alkami Technology Competitors	-603.24%	26.43%	-8.84%

Analyst Recommendations

This is a summary of current recommendations for Alkami Technology and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	2	6	1	0	1.89
Alkami Technology Competitors	5781	21584	44978	1499	2.57

Alkami Technology presently has a consensus target price of $17.60, suggesting a potential upside of 25.18%. As a group, “Software” companies have a potential upside of 27.86%. Given Alkami Technology’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Alkami Technology has less favorable growth aspects than its competitors.

Risk & Volatility

Alkami Technology has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Alkami Technology’s competitors have a beta of 1.34, suggesting that their average share price is 34% more volatile than the S&P 500.

Summary

Alkami Technology competitors beat Alkami Technology on 10 of the 13 factors compared.

Alkami Technology Company Profile

Alkami Technology provides cloud-based digital banking software to banks and credit unions. Its platform helps financial institutions deliver online and mobile banking experiences to their customers and members. The company’s offerings include digital banking tools, data analytics and marketing capabilities, and services that support account opening and payments. These products are designed to help financial institutions manage digital customer interactions through a unified platform. Founded in 2009 and headquartered in Plano, Texas, Alkami primarily serves financial institutions in the United States.