Head-To-Head Review: Alkami Technology (NASDAQ:ALKT) and CommVault Systems (NASDAQ:CVLT)

Alkami Technology (NASDAQ:ALKT) and CommVault Systems (NASDAQ:CVLT) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Alkami Technology and CommVault Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkami Technology	$443.64 million	3.84	-$47.65 million	($0.42)	-37.98
CommVault Systems	$1.18 billion	5.87	$70.66 million	$1.57	106.89

CommVault Systems has higher revenue and earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

55.0% of Alkami Technology shares are owned by institutional investors. Comparatively, 93.5% of CommVault Systems shares are owned by institutional investors. 17.1% of Alkami Technology shares are owned by company insiders. Comparatively, 0.9% of CommVault Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Alkami Technology has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Alkami Technology and CommVault Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-9.21%	-7.68%	-3.32%
CommVault Systems	5.62%	88.75%	5.59%

Analyst Ratings

This is a breakdown of recent ratings for Alkami Technology and CommVault Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	2	3	3	0	2.12
CommVault Systems	0	10	10	1	2.57

Alkami Technology currently has a consensus price target of $20.80, suggesting a potential upside of 30.41%. CommVault Systems has a consensus price target of $158.25, suggesting a potential downside of 5.70%. Given Alkami Technology’s higher possible upside, analysts clearly believe Alkami Technology is more favorable than CommVault Systems.

Summary

CommVault Systems beats Alkami Technology on 13 of the 15 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 CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.