Analyzing Similarweb (NYSE:SMWB) & Alkami Technology (NASDAQ:ALKT)

Alkami Technology (NASDAQ:ALKT) and Similarweb (NYSE:SMWB) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Insider & Institutional Ownership

55.0% of Alkami Technology shares are owned by institutional investors. Comparatively, 57.6% of Similarweb shares are owned by institutional investors. 17.1% of Alkami Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Alkami Technology has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alkami Technology and Similarweb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	2	7	1	0	1.90
Similarweb	1	4	5	1	2.55

Alkami Technology presently has a consensus target price of $17.60, suggesting a potential upside of 41.94%. Similarweb has a consensus target price of $9.71, suggesting a potential upside of 10.89%. Given Alkami Technology’s higher possible upside, research analysts clearly believe Alkami Technology is more favorable than Similarweb.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkami Technology	$443.64 million	2.99	-$47.65 million	($0.34)	-36.47
Similarweb	$282.60 million	2.72	-$32.94 million	($0.25)	-35.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-7.24%	-4.75%	-2.07%
Similarweb	-7.37%	-19.81%	-1.74%

Summary

Similarweb beats Alkami Technology on 9 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 Similarweb

Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies. It also provides sales intelligence solutions for its customers to access relevant buying signals and digital insights of their customers to generate leads quickly; and shopper intelligence solutions for its customers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process. In addition, the company offers investor intelligence solutions for its customers to access an end-to-end view of market, sector, and company performance to ideate and monitor investment opportunities; forecast market performance; and perform due diligence. Further, it provides data-as-a-service and advisory services. The company serves retail, consumer packaged goods, consumer finance, consultancies, marketing and advertising agencies, media and publishers, business-to-business software, payment processors, travel, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Givatayim, Israel.