Head to Head Survey: Sprout Social (NASDAQ:SPT) vs. Alkami Technology (NASDAQ:ALKT)

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

Analyst Ratings

This is a summary of current ratings and price targets for Sprout Social and Alkami Technology, as provided by MarketBeat.

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

Sprout Social presently has a consensus target price of $47.08, suggesting a potential upside of 64.40%. Alkami Technology has a consensus target price of $37.44, suggesting a potential upside of 4.21%. Given Sprout Social’s higher possible upside, equities research analysts clearly believe Sprout Social is more favorable than Alkami Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-17.24%	-40.94%	-15.70%
Alkami Technology	-14.55%	-11.31%	-9.15%

Risk and Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$392.40 million	4.17	-$66.43 million	($1.20)	-23.87
Alkami Technology	$315.56 million	11.44	-$62.91 million	($0.47)	-76.45

Alkami Technology has lower revenue, but higher earnings 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.

Insider & Institutional Ownership

55.0% of Alkami Technology shares are held by institutional investors. 11.0% of Sprout Social shares are held by company insiders. Comparatively, 38.0% of Alkami Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Alkami Technology beats Sprout Social on 9 of the 13 factors compared between the two stocks.

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.

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.