Alkami Technology (NASDAQ:ALKT – Get Free Report) and Bridgeline Digital (NASDAQ:BLIN – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Alkami Technology and Bridgeline Digital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alkami Technology | 2 | 3 | 3 | 0 | 2.12 |
| Bridgeline Digital | 1 | 1 | 1 | 0 | 2.00 |
Alkami Technology currently has a consensus price target of $22.00, indicating a potential upside of 59.42%. Bridgeline Digital has a consensus price target of $4.62, indicating a potential upside of 444.17%. Given Bridgeline Digital’s higher probable upside, analysts clearly believe Bridgeline Digital is more favorable than Alkami Technology.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Alkami Technology | -9.21% | -7.68% | -3.32% |
| Bridgeline Digital | -8.65% | -14.51% | -8.76% |
Risk and Volatility
Alkami Technology has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Bridgeline Digital has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Valuation and Earnings
This table compares Alkami Technology and Bridgeline Digital”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alkami Technology | $443.64 million | 3.33 | -$47.65 million | ($0.42) | -32.86 |
| Bridgeline Digital | $15.62 million | 0.68 | -$2.52 million | ($0.12) | -7.08 |
Bridgeline Digital has lower revenue, but higher earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than Bridgeline Digital, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
55.0% of Alkami Technology shares are held by institutional investors. Comparatively, 15.1% of Bridgeline Digital shares are held by institutional investors. 17.1% of Alkami Technology shares are held by insiders. Comparatively, 27.5% of Bridgeline Digital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
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 Bridgeline Digital
Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO. It also provides Bridgeline TruPresence, a web content management and eCommerce platform to support the needs of multi-unit organizations and franchises; Bridgeline Unbound, a technology suite that empower marketers to easily manage their digital experiences and create personalized customer journeys; and OrchestraCMS, a digital experience platform that enables development of custom solutions, third-party integrations, and delivery of digital transformation initiatives on the Salesforce platform. In addition, the company offers digital engagement services comprising digital strategy, web design and web development, usability engineering, information architecture, and SEO, as well as hosting services. It serves vertical markets, such as industrial distributors and wholesalers, franchises and enterprises, manufacturers, eCommerce retailers, health services and life sciences, technology, credit unions and banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was incorporated in 2000 and is based in Woburn, Massachusetts.
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