Head-To-Head Contrast: Alkami Technology (NASDAQ:ALKT) vs. Tyler Technologies (NYSE:TYL)

Tyler Technologies (NYSE:TYL) 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 valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

93.3% of Tyler Technologies shares are owned by institutional investors. Comparatively, 55.0% of Alkami Technology shares are owned by institutional investors. 2.2% of Tyler Technologies shares are owned by insiders. Comparatively, 38.0% of Alkami Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	9.50%	9.35%	5.83%
Alkami Technology	-20.42%	-15.31%	-10.95%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Tyler Technologies and Alkami Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	0	2	7	0	2.78
Alkami Technology	0	3	8	0	2.73

Tyler Technologies currently has a consensus target price of $492.22, suggesting a potential upside of 4.95%. Alkami Technology has a consensus target price of $26.90, suggesting a potential downside of 1.57%. Given Tyler Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Tyler Technologies is more favorable than Alkami Technology.

Volatility and Risk

Tyler Technologies has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Earnings and Valuation

This table compares Tyler Technologies 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
Tyler Technologies	$1.95 billion	10.20	$165.92 million	$4.42	106.11
Alkami Technology	$264.83 million	10.06	-$62.91 million	($0.60)	-45.55

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

Summary

Tyler Technologies beats Alkami Technology on 12 of the 14 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

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.