HeartCore Enterprises (NASDAQ:HTCR) and Alkami Technology (NASDAQ:ALKT) Head-To-Head Review

HeartCore Enterprises (NASDAQ:HTCR) and Alkami Technology (NASDAQ:ALKT) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	15.42%	-138.90%	-53.97%
Alkami Technology	-9.21%	-7.68%	-3.32%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for HeartCore Enterprises and Alkami Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartCore Enterprises	1	1	0	0	1.50
Alkami Technology	2	3	3	0	2.12

Alkami Technology has a consensus price target of $20.80, indicating a potential upside of 50.57%. Given Alkami Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Alkami Technology is more favorable than HeartCore Enterprises.

Institutional and Insider Ownership

1.7% of HeartCore Enterprises shares are held by institutional investors. Comparatively, 55.0% of Alkami Technology shares are held by institutional investors. 36.1% of HeartCore Enterprises shares are held by company insiders. Comparatively, 17.1% of Alkami Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares HeartCore Enterprises and Alkami Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$8.97 million	0.27	$5.79 million	($4.21)	-0.38
Alkami Technology	$443.64 million	3.33	-$47.65 million	($0.42)	-32.89

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

Risk and Volatility

HeartCore Enterprises has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Summary

Alkami Technology beats HeartCore Enterprises on 9 of the 14 factors compared between the two stocks.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.

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.