Alkami Technology (NASDAQ:ALKT – Get Free Report) and American Software (NASDAQ:AMSWA – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.
Analyst Ratings
This is a summary of current recommendations and price targets for Alkami Technology and American Software, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alkami Technology | 0 | 3 | 8 | 0 | 2.73 |
| American Software | 0 | 0 | 1 | 0 | 3.00 |
Alkami Technology currently has a consensus target price of $26.10, suggesting a potential upside of 9.30%. American Software has a consensus target price of $18.00, suggesting a potential upside of 69.97%. Given American Software’s stronger consensus rating and higher probable upside, analysts plainly believe American Software is more favorable than Alkami Technology.
Risk & Volatility
Insider and Institutional Ownership
55.0% of Alkami Technology shares are held by institutional investors. Comparatively, 77.0% of American Software shares are held by institutional investors. 25.9% of Alkami Technology shares are held by insiders. Comparatively, 11.4% of American Software shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Alkami Technology and American Software’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alkami Technology | $264.83 million | 8.78 | -$62.91 million | ($0.66) | -36.12 |
| American Software | $123.66 million | 2.84 | $10.42 million | $0.35 | 30.26 |
American Software has lower revenue, but higher earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than American Software, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alkami Technology and American Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alkami Technology | -23.76% | -17.00% | -12.00% |
| American Software | 10.94% | 9.14% | 6.65% |
Summary
American Software beats Alkami Technology on 9 of the 13 factors compared between the two stocks.
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.
About American Software
American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. It operates through Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other segments. The SCM segment leverages a single platform spanning eight supply chain process areas including product, demand, inventory, network optimization supply, deploy aligned with integrated business planning and supply chain data management. The IT Consulting segment offers IT staffing and consulting services firm. Other segment provides purchasing and materials management, client order processing, financial, e-commerce, and traditional manufacturing software and services. In addition, it offers ongoing support and maintenance services; cloud hosting and managed services; and implementation and training services. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, food and beverage, consumer packaged goods, consumer durable goods, wholesale distribution, specialty chemicals, and other process manufacturing industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.
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