Head to Head Analysis: American Software (NASDAQ:AMSWA) versus Alkami Technology (NASDAQ:ALKT)

American Software (NASDAQ:AMSWAGet Free Report) and Alkami Technology (NASDAQ:ALKTGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares American Software 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
American Software $123.66 million 2.85 $10.42 million $0.35 30.34
Alkami Technology $264.83 million 8.76 -$62.91 million ($0.66) -36.03

American Software has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for American Software and Alkami Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Software 0 0 1 0 3.00
Alkami Technology 0 3 8 0 2.73

American Software currently has a consensus price target of $18.00, suggesting a potential upside of 69.49%. Alkami Technology has a consensus price target of $26.10, suggesting a potential upside of 9.76%. Given American Software’s stronger consensus rating and higher possible upside, research analysts plainly believe American Software is more favorable than Alkami Technology.

Profitability

This table compares American Software and Alkami Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Software 10.94% 9.14% 6.65%
Alkami Technology -23.76% -17.00% -12.00%

Volatility & Risk

American Software has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Institutional and Insider Ownership

77.0% of American Software shares are held by institutional investors. Comparatively, 55.0% of Alkami Technology shares are held by institutional investors. 11.4% of American Software shares are held by company insiders. Comparatively, 38.0% of Alkami Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

American Software beats Alkami Technology on 10 of the 14 factors compared between the two stocks.

About American Software

(Get Free Report)

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.

About Alkami Technology

(Get Free Report)

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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