Head to Head Survey: Alkami Technology (NASDAQ:ALKT) and Splunk (NASDAQ:SPLK)

Alkami Technology (NASDAQ:ALKTGet Rating) and Splunk (NASDAQ:SPLKGet Rating) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Alkami Technology and Splunk, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alkami Technology 0 1 4 0 2.80
Splunk 0 7 17 0 2.71

Alkami Technology currently has a consensus target price of $22.60, indicating a potential upside of 62.36%. Splunk has a consensus target price of $143.48, indicating a potential upside of 37.30%. Given Alkami Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Alkami Technology is more favorable than Splunk.

Risk & Volatility

Alkami Technology has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Splunk has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Alkami Technology -30.15% -13.11% -10.46%
Splunk -41.20% -396.11% -15.63%

Institutional and Insider Ownership

49.5% of Alkami Technology shares are owned by institutional investors. Comparatively, 91.6% of Splunk shares are owned by institutional investors. 40.0% of Alkami Technology shares are owned by insiders. Comparatively, 0.3% of Splunk shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Alkami Technology and Splunk’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 $152.16 million 8.28 -$46.82 million ($0.58) -24.00
Splunk $2.67 billion 6.29 -$1.34 billion ($7.26) -14.39

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

Summary

Alkami Technology beats Splunk on 9 of the 14 factors compared between the two stocks.

About Alkami Technology

(Get Rating)

Alkami Technology, Inc. offers a cloud-based digital banking platform in the United States. The company's platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, multi-tenant architecture. It offers an end- to- end set of software products, which include Alkami Platform, Retail Banking Solutions, Business Banking Solutions, and The Alkami Difference. It serves community, regional, credit unions, and retail and business banking. Alkami Technology, Inc. was founded in 2009 and is headquartered in Plano, Texas.

About Splunk

(Get Rating)

Splunk Inc., together with its subsidiaries, provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally. The company offers Splunk Platform, a real-time data platform comprising collection, streaming, indexing, search, reporting, analysis, machine learning, alerting, monitoring, and data management capabilities. It also provides Splunk Solutions, such as Splunk Security solutions that enable cybersecurity teams streamline the security operations workflow, accelerate threat detection and response, enhance threat visibility, and scale resources to increase analyst productivity through machine learning and automation; Splunk IT Solutions that provide IT Operations teams visibility and control across cloud and on-premises environments; and Splunk Observability Solutions for building and maintaining infrastructure and applications. In addition, the company offers Ecosystem Solutions, which includes pre-built data inputs, workflows, searches, reports, alerts, custom dashboards, flexible UI components, custom data visualizations, and integration actions and methods, as well as Splunk On-Call, Splunk Infrastructure Monitoring, and Splunk SOAR solutions, which provides APIs, SDKs, and other interfaces that enable its ecosystem, including third-party developers, partners, and customers to build content that configures and extends Splunk solutions to accommodate specific use cases. Further, the company provides adoption and implementation services, education services, and maintenance and customer support services. It sells its offerings directly through field and inside sales, and indirectly through various routes to market with various partners. Splunk Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

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