Contrasting NetClass Technology (NASDAQ:NTCL) & Alkami Technology (NASDAQ:ALKT)

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

Institutional & Insider Ownership

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

Valuation and Earnings

This table compares Alkami Technology and NetClass Technology”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	$471.94 million	3.94	-$47.65 million	($0.47)	-36.99
NetClass Technology	$9.81 million	0.83	-$10.82 million	N/A	N/A

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

Risk & Volatility

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

Analyst Ratings

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

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

Alkami Technology currently has a consensus target price of $22.20, indicating 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 Alkami Technology and NetClass Technology’s net margins, return on equity and return on assets.

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

Summary

Alkami Technology beats NetClass Technology on 8 of the 12 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 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.