Comparing Alight (NYSE:ALIT) and KORE Group (NYSE:KORE)

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

Analyst Recommendations

This is a summary of recent ratings for KORE Group and Alight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KORE Group	1	1	0	0	1.50
Alight	2	3	3	0	2.12

KORE Group currently has a consensus price target of $5.00, indicating a potential downside of 45.92%. Alight has a consensus price target of $62.57, indicating a potential upside of 218.28%. Given Alight’s stronger consensus rating and higher possible upside, analysts clearly believe Alight is more favorable than KORE Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KORE Group	-27.37%	N/A	-18.41%
Alight	-137.50%	13.04%	4.42%

Risk and Volatility

KORE Group has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Alight has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Earnings and Valuation

This table compares KORE Group and Alight”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KORE Group	$285.95 million	0.57	-$62.98 million	($3.86)	-2.40
Alight	$2.26 billion	0.23	-$3.10 billion	($117.40)	-0.17

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

Insider and Institutional Ownership

57.5% of KORE Group shares are owned by institutional investors. Comparatively, 96.7% of Alight shares are owned by institutional investors. 33.5% of KORE Group shares are owned by company insiders. Comparatively, 2.1% of Alight shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Alight beats KORE Group on 9 of the 14 factors compared between the two stocks.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.

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.