Alkami Technology (NASDAQ:ALKT) and NetClass Technology (NASDAQ:NTCL) Financial Analysis

NetClass Technology (NASDAQ:NTCL) and Alkami Technology (NASDAQ:ALKT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Valuation and Earnings

This table compares NetClass Technology and Alkami Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetClass Technology	$9.81 million	0.83	-$10.82 million	N/A	N/A
Alkami Technology	$471.94 million	3.94	-$47.65 million	($0.47)	-36.99

NetClass Technology has higher earnings, but lower revenue than Alkami Technology.

Volatility & Risk

NetClass Technology has a beta of -2.04, meaning that its stock price is 304% less volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NetClass Technology and Alkami Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetClass Technology	1	0	0	0	1.00
Alkami Technology	1	3	3	0	2.29

Alkami Technology has a consensus price target of $22.20, suggesting a potential upside of 27.70%. Given Alkami Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Alkami Technology is more favorable than NetClass Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NetClass Technology	N/A	N/A	N/A
Alkami Technology	-10.55%	-8.91%	-3.79%

Insider and Institutional Ownership

55.0% of Alkami Technology shares are held by institutional investors. 17.1% of Alkami Technology shares are held by company 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.

Summary

Alkami Technology beats NetClass Technology on 8 of the 12 factors compared between the two stocks.

About NetClass Technology

Netclass Technology, Inc. operates as a holding company, which provides IT solutions to schools, training institutions, corporations, public agencies and other institutions. Its solutions include teaching management, campus management, online teaching, online examination, epidemic prevention and control, education credit block chain system, and lecturer evaluation services. The company was founded January 4, 2022 and is headquartered in Shanghai, China.

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.