Alkami Technology (NASDAQ:ALKT) & Blend Labs (NYSE:BLND) Critical Review

Alkami Technology (NASDAQ:ALKTGet Free Report) and Blend Labs (NYSE:BLNDGet Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

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 insiders. Comparatively, 40.3% of Blend Labs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices 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, suggesting a potential upside of 19.72%. Blend Labs has a consensus price target of $2.82, suggesting a potential upside of 85.92%. Given Blend Labs’ stronger consensus rating and higher possible upside, analysts plainly believe Blend Labs is more favorable than Alkami Technology.

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.

Risk and Volatility

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

Summary

Blend Labs beats Alkami Technology on 11 of the 14 factors compared between the two stocks.

About Alkami Technology

(Get Free Report)

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

(Get Free Report)

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.

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