Head-To-Head Analysis: Alkami Technology (NASDAQ:ALKT) & Atlassian (NASDAQ:TEAM)

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

Risk and Volatility

Alkami Technology has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

55.0% of Alkami Technology shares are owned by institutional investors. Comparatively, 93.0% of Atlassian shares are owned by institutional investors. 38.0% of Alkami Technology shares are owned by company insiders. Comparatively, 40.5% of Atlassian shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-17.47%	-13.43%	-10.34%
Atlassian	-6.89%	-17.69%	-3.62%

Analyst Ratings

This is a summary of recent recommendations for Alkami Technology and Atlassian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	0	3	7	0	2.70
Atlassian	0	9	12	0	2.57

Alkami Technology currently has a consensus price target of $34.22, suggesting a potential downside of 10.37%. Atlassian has a consensus price target of $212.47, suggesting a potential upside of 11.57%. Given Atlassian’s higher probable upside, analysts clearly believe Atlassian is more favorable than Alkami Technology.

Earnings & Valuation

This table compares Alkami Technology and Atlassian”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkami Technology	$297.36 million	12.71	-$62.91 million	($0.54)	-70.70
Atlassian	$4.36 billion	11.37	-$300.52 million	($0.63)	-302.29

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

Summary

Atlassian beats Alkami Technology on 8 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 Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.