Alight (NYSE:ALIT) & OLO (NYSE:OLO) Head to Head Survey

Alight (NYSE:ALIT) and OLO (NYSE:OLO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Alight and OLO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alight	-7.80%	5.09%	2.30%
OLO	-25.53%	-2.96%	-2.61%

Analyst Ratings

This is a breakdown of current recommendations for Alight and OLO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alight	0	0	7	0	3.00
OLO	0	3	4	0	2.57

Alight presently has a consensus target price of $12.71, suggesting a potential upside of 35.26%. OLO has a consensus target price of $9.10, suggesting a potential upside of 76.87%. Given OLO’s higher probable upside, analysts clearly believe OLO is more favorable than Alight.

Volatility and Risk

Alight has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, OLO has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

96.7% of Alight shares are held by institutional investors. Comparatively, 93.4% of OLO shares are held by institutional investors. 4.0% of Alight shares are held by company insiders. Comparatively, 39.1% of OLO shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Alight and OLO’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alight	$3.41 billion	1.55	-$345.00 million	($0.55)	-17.09
OLO	$228.29 million	3.65	-$58.29 million	($0.36)	-14.29

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

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.

About OLO

Olo Inc. operates an open SaaS platform for restaurants in the United States. The company's platform enables on-demand digital commerce operations, which cover digital ordering, delivery, front-of-house management, and payments. Its solutions include Order, a suite of solutions powering restaurant brands' on-demand commerce operations, enabling digital ordering, delivery, and channel management through ordering, dispatch, rails, switchboard, network, virtual brands, kiosk, catering, and sync modules; Engage, a suite of restaurant-centric marketing solutions optimizing guest lifetime value by strengthening and enhancing the restaurants' direct guest relationships, through the guest data platform, marketing, sentiment, and host modules; and Pay, a frictionless payment platform that enables restaurants to grow and protect their digital business through customer payment experience that offers advanced fraud prevention to improve authorization rates for valid transactions, and increase basket conversion through its Olo Pay module. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.