Alkami Technology (NASDAQ:ALKT – Get Free Report) and CommVault Systems (NASDAQ:CVLT – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
55.0% of Alkami Technology shares are held by institutional investors. Comparatively, 93.5% of CommVault Systems shares are held by institutional investors. 17.1% of Alkami Technology shares are held by insiders. Comparatively, 0.9% of CommVault Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Alkami Technology and CommVault Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alkami Technology | 2 | 3 | 3 | 0 | 2.12 |
| CommVault Systems | 0 | 10 | 10 | 1 | 2.57 |
Alkami Technology currently has a consensus price target of $20.80, suggesting a potential upside of 30.41%. CommVault Systems has a consensus price target of $158.25, suggesting a potential downside of 5.70%. Given Alkami Technology’s higher probable upside, equities research analysts clearly believe Alkami Technology is more favorable than CommVault Systems.
Profitability
This table compares Alkami Technology and CommVault Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alkami Technology | -9.21% | -7.68% | -3.32% |
| CommVault Systems | 5.62% | 88.75% | 5.59% |
Risk and Volatility
Alkami Technology has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Earnings and Valuation
This table compares Alkami Technology and CommVault Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alkami Technology | $443.64 million | 3.84 | -$47.65 million | ($0.42) | -37.98 |
| CommVault Systems | $1.18 billion | 5.87 | $70.66 million | $1.57 | 106.89 |
CommVault Systems has higher revenue and earnings than Alkami Technology. Alkami Technology is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.
Summary
CommVault Systems beats Alkami Technology on 13 of the 15 factors compared between the two stocks.
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.
About CommVault Systems
Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.
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