Rimini Street (NASDAQ:RMNI – Get Free Report) and Alkami Technology (NASDAQ:ALKT – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Profitability
This table compares Rimini Street and Alkami Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rimini Street | 10.10% | -32.42% | 4.20% |
| Alkami Technology | -10.63% | -5.73% | -2.69% |
Institutional and Insider Ownership
73.8% of Rimini Street shares are held by institutional investors. Comparatively, 55.0% of Alkami Technology shares are held by institutional investors. 41.2% of Rimini Street shares are held by company insiders. Comparatively, 18.1% of Alkami Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rimini Street | 0 | 3 | 2 | 0 | 2.40 |
| Alkami Technology | 1 | 3 | 6 | 0 | 2.50 |
Rimini Street currently has a consensus target price of $5.75, indicating a potential upside of 43.39%. Alkami Technology has a consensus target price of $36.00, indicating a potential upside of 56.32%. Given Alkami Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Alkami Technology is more favorable than Rimini Street.
Volatility & Risk
Rimini Street has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Earnings & Valuation
This table compares Rimini Street 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 | |
| Rimini Street | $425.96 million | 0.86 | -$36.27 million | $0.46 | 8.72 |
| Alkami Technology | $333.85 million | 7.24 | -$40.83 million | ($0.43) | -53.56 |
Rimini Street has higher revenue and earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than Rimini Street, indicating that it is currently the more affordable of the two stocks.
Summary
Rimini Street beats Alkami Technology on 9 of the 14 factors compared between the two stocks.
About Rimini Street
Rimini Street, Inc. provides enterprise software products, services, and support. The company engages in the provision of support services for Oracle and SAP enterprise software products. It also provides Rimini ONE, an outsourcing option that offers a set of unified and integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize its clients’ application, database, and technology enterprise software; Rimini Support, a mission-critical support for Oracle, SAP, proprietary and open-source database, and technology software; Rimini Manage, a suite of managed services for application and database software; Rimini Protect, a suite of personalized software security services and solutions; and Rimini Connect, a suite of managed interoperability solutions for browsers, operating systems, and email systems. In addition, the company offers Rimini Watch, a suite of observability solutions that include monitoring and system health check solutions; Rimini Consult, a suite of professional services for clients’ enterprise software customization, configuration, implementation, integration, interoperability, migration, staff augmentation, and other project needs; and Rimini Custom, a program that expands support and related services to a broader portfolio of enterprise software. The company serves Fortune 500 companies and Fortune Global 100 companies across various industries. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was incorporated in 2005 and is headquartered in Las Vegas, Nevada.
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.
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