Alkami Technology (NASDAQ:ALKT – Get Rating) and Ceridian HCM (NYSE:CDAY – Get Rating) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Insider & Institutional Ownership
53.5% of Alkami Technology shares are held by institutional investors. 40.0% of Alkami Technology shares are held by company insiders. Comparatively, 4.0% of Ceridian HCM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Alkami Technology has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Ceridian HCM has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alkami Technology | 0 | 1 | 4 | 0 | 2.80 |
| Ceridian HCM | 0 | 5 | 8 | 0 | 2.62 |
Alkami Technology currently has a consensus price target of $18.20, indicating a potential upside of 43.76%. Ceridian HCM has a consensus price target of $79.64, indicating a potential upside of 8.77%. Given Alkami Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe Alkami Technology is more favorable than Ceridian HCM.
Earnings & Valuation
This table compares Alkami Technology and Ceridian HCM’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alkami Technology | $204.27 million | 5.72 | -$58.60 million | ($0.64) | -19.78 |
| Ceridian HCM | $1.25 billion | 8.97 | -$73.40 million | ($0.48) | -152.54 |
Alkami Technology has higher earnings, but lower revenue than Ceridian HCM. Ceridian HCM is trading at a lower price-to-earnings ratio than Alkami Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alkami Technology and Ceridian HCM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alkami Technology | -28.69% | -19.59% | -13.84% |
| Ceridian HCM | -5.89% | -1.17% | -0.27% |
Summary
Ceridian HCM beats Alkami Technology on 8 of the 13 factors compared between the two stocks.
About Alkami Technology
Alkami Technology, Inc. offers a cloud-based digital banking platform in the United States. The company's platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, multi-tenant architecture. It offers an end- to- end set of software products, which include Alkami Platform, Retail Banking Solutions, Business Banking Solutions, and The Alkami Difference. It serves community, regional, credit unions, and retail and business banking. Alkami Technology, Inc. was founded in 2009 and is headquartered in Plano, Texas.
About Ceridian HCM
Ceridian HCM Holding, Inc. engages in the development of human capital management software. It offers Dayforce, Powerpay, and Bureau products and services. The Dayforce provides human resources (HR), payroll, benefits, workforce management, and talent management functionality. Powerpay is a cloud HR and payroll solution for the Canadian small business market, through both direct sales and established partner channels. The Bureau solutions offer payroll and payroll-related services using legacy technology. The company was founded on July 3, 2013, and is headquartered in Minneapolis, MN.
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