Head-To-Head Survey: Sprout Social (NASDAQ:SPT) & Alkami Technology (NASDAQ:ALKT)

Alkami Technology (NASDAQ:ALKT) and Sprout Social (NASDAQ:SPT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Alkami Technology and Sprout Social, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	0	3	7	0	2.70
Sprout Social	1	6	7	0	2.43

Alkami Technology currently has a consensus price target of $37.44, indicating a potential downside of 0.52%. Sprout Social has a consensus price target of $47.08, indicating a potential upside of 64.63%. Given Sprout Social’s higher probable upside, analysts clearly believe Sprout Social is more favorable than Alkami Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-14.55%	-11.31%	-9.15%
Sprout Social	-17.24%	-41.65%	-15.66%

Insider & Institutional Ownership

55.0% of Alkami Technology shares are held by institutional investors. 38.0% of Alkami Technology shares are held by company insiders. Comparatively, 11.0% of Sprout Social shares are held by company 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.

Volatility & Risk

Alkami Technology has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Sprout Social has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Valuation & Earnings

This table compares Alkami Technology and Sprout Social”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkami Technology	$264.83 million	14.28	-$62.91 million	($0.47)	-80.09
Sprout Social	$375.30 million	4.35	-$66.43 million	($1.20)	-23.83

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

Summary

Alkami Technology beats Sprout Social 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 Sprout Social

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. It offers integrated tools, such as social engagement/response; publishing; reporting and analytics; social listening and business intelligence; reputation management; social commerce; employee advocacy; and automation and workflows. In addition, the company provides smart inbox, social customer relationship management, social monitoring and alerts, customer service tools, and automation; and centralized content planning, creation, and publishing, automated scheduling, content performance reporting, suggested content, message approval workflows, publishing permissions and governance, and content and asset libraries. Further, it offers social media; content performance, customer service and team, custom report builder, and reporting API; and market research, brand health, competitive insights, consumer trends, and product feedback; and social commerce, reputation management, employee advocacy, mobile applications, and chat bot creation and management. Additionally, the company offers professional services consisting of consulting and training services. It serves social and community management; public relations; marketing; influencer marketing; customer service and care; commerce, sales and customer acquisition; recruiting and hiring, product development, and business strategy; and small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. Sprout Social, Inc. was incorporated in 2010 and is headquartered in Chicago, Illinois.