Financial Comparison: Alkami Technology (NASDAQ:ALKT) & Palantir Technologies (NYSE:PLTR)

Alkami Technology (NASDAQ:ALKT) and Palantir Technologies (NYSE:PLTR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-20.42%	-15.31%	-11.29%
Palantir Technologies	12.79%	8.28%	6.50%

Valuation and Earnings

This table compares Alkami Technology and Palantir Technologies’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkami Technology	$264.83 million	12.09	-$62.91 million	($0.60)	-54.73
Palantir Technologies	$2.33 billion	25.85	$209.82 million	$0.12	225.83

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

Volatility & Risk

Alkami Technology has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Palantir Technologies has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alkami Technology and Palantir Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	0	3	7	0	2.70
Palantir Technologies	7	4	4	0	1.80

Alkami Technology currently has a consensus price target of $28.56, indicating a potential downside of 13.05%. Palantir Technologies has a consensus price target of $21.75, indicating a potential downside of 19.74%. Given Alkami Technology’s stronger consensus rating and higher probable upside, research analysts clearly believe Alkami Technology is more favorable than Palantir Technologies.

Insider & Institutional Ownership

55.0% of Alkami Technology shares are owned by institutional investors. Comparatively, 45.7% of Palantir Technologies shares are owned by institutional investors. 38.0% of Alkami Technology shares are owned by insiders. Comparatively, 12.9% of Palantir Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Palantir Technologies beats Alkami Technology on 9 of the 14 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 Palantir Technologies

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform (AIP) that provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations' actions and processes into tools for humans and LLM-driven agents. The company was incorporated in 2003 and is headquartered in Denver, Colorado.