SAP (NYSE:SAP – Get Free Report) and Alkami Technology (NASDAQ:ALKT – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
SAP has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Profitability
This table compares SAP and Alkami Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SAP | 20.87% | 17.49% | 10.77% |
| Alkami Technology | -7.24% | -4.75% | -2.07% |
Insider and Institutional Ownership
55.0% of Alkami Technology shares are owned by institutional investors. 7.3% of SAP shares are owned by insiders. Comparatively, 17.1% of Alkami Technology shares are owned by 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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for SAP and Alkami Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SAP | 1 | 7 | 15 | 1 | 2.67 |
| Alkami Technology | 2 | 6 | 1 | 0 | 1.89 |
SAP currently has a consensus target price of $258.38, indicating a potential upside of 10.27%. Alkami Technology has a consensus target price of $17.60, indicating a potential upside of 26.26%. Given Alkami Technology’s higher possible upside, analysts plainly believe Alkami Technology is more favorable than SAP.
Valuation and Earnings
This table compares SAP and Alkami Technology”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SAP | $41.63 billion | 6.92 | $8.10 billion | $8.19 | 28.61 |
| Alkami Technology | $443.64 million | 3.36 | -$47.65 million | ($0.34) | -41.00 |
SAP has higher revenue and earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than SAP, indicating that it is currently the more affordable of the two stocks.
Summary
SAP beats Alkami Technology on 12 of the 15 factors compared between the two stocks.
About SAP
SAP SE is a German enterprise software company headquartered in Walldorf. Founded in 1972, it develops software that helps organizations manage business operations and use data across their operations. Its products and services include enterprise resource planning (ERP) software, cloud applications, database and analytics tools, and solutions for areas such as finance, supply chain management, human resources, procurement, and customer experience. SAP serves businesses and public-sector organizations across the globe.
About Alkami Technology
Alkami Technology provides cloud-based digital banking software to banks and credit unions. Its platform helps financial institutions deliver online and mobile banking experiences to their customers and members. The company’s offerings include digital banking tools, data analytics and marketing capabilities, and services that support account opening and payments. These products are designed to help financial institutions manage digital customer interactions through a unified platform. Founded in 2009 and headquartered in Plano, Texas, Alkami primarily serves financial institutions in the United States.
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