Blend Labs (NYSE:BLND) versus Alkami Technology (NASDAQ:ALKT) Head-To-Head Contrast

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

Volatility and Risk

Alkami Technology has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Profitability

This table compares Alkami Technology and Blend Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alkami Technology	-9.21%	-7.68%	-3.32%
Blend Labs	0.32%	N/A	-3.15%

Earnings & Valuation

This table compares Alkami Technology and Blend Labs”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	$443.64 million	4.79	-$47.65 million	($0.42)	-47.33
Blend Labs	$123.51 million	2.90	-$6.80 million	($0.09)	-16.83

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Alkami Technology and Blend Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkami Technology	1	3	3	0	2.29
Blend Labs	1	3	4	0	2.38

Alkami Technology currently has a consensus price target of $23.80, indicating a potential upside of 19.72%. Blend Labs has a consensus price target of $2.82, indicating a potential upside of 85.92%. Given Blend Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Blend Labs is more favorable than Alkami Technology.

Insider and Institutional Ownership

55.0% of Alkami Technology shares are owned by institutional investors. Comparatively, 52.6% of Blend Labs shares are owned by institutional investors. 17.1% of Alkami Technology shares are owned by company insiders. Comparatively, 40.3% of Blend Labs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Blend Labs beats Alkami Technology on 11 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 Blend Labs

Blend Labs, Inc. engages in the provision of cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company's Blend Builder Platform offers a suite of products that powers digital-first consumer journeys for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts; and offers mortgage products to facilitate the homeownership journey for consumers comprising close, income verification for mortgage, homeowners' insurance, and realty. It also offers verification components to automate confirmation tasks that are needed to underwrite a loan or approve the opening of a new deposit account; decisioning components to reduce the need for human intervention by automatically applying business rules throughout an application workflow configured by a financial services firm; workflow intelligence components to manage data collection and automate tasks throughout the loan origination process; and marketplace components to enable consumers to shop for products and services presented at the precise moment of need during an application for a loan. In addition, the company, through its subsidiary, offers title search procedures for title insurance policies, escrow, and other closing and settlement services, as well as other trustee services; and provides professional and consulting services. It serves banks, credit unions, fintechs, and non-bank mortgage lenders. The company was incorporated in 2012 and is headquartered in San Francisco, California.