Teradata (NYSE:TDC) & Alkami Technology (NASDAQ:ALKT) Financial Comparison

Teradata (NYSE:TDC) and Alkami Technology (NASDAQ:ALKT) are both mid-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, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Teradata and Alkami Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	3	4	4	0	2.09
Alkami Technology	0	3	7	0	2.70

Teradata presently has a consensus price target of $40.36, suggesting a potential upside of 55.48%. Alkami Technology has a consensus price target of $33.89, suggesting a potential upside of 8.79%. Given Teradata’s higher possible upside, equities analysts plainly believe Teradata is more favorable than Alkami Technology.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradata	$1.80 billion	1.40	$62.00 million	$0.42	61.81
Alkami Technology	$297.36 million	10.22	-$62.91 million	($0.60)	-51.92

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

Institutional and Insider Ownership

90.3% of Teradata shares are owned by institutional investors. Comparatively, 55.0% of Alkami Technology shares are owned by institutional investors. 0.9% of Teradata shares are owned by company insiders. Comparatively, 38.0% of Alkami Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Teradata has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradata	3.45%	114.57%	6.34%
Alkami Technology	-17.47%	-13.47%	-10.21%

Summary

Teradata beats Alkami Technology on 10 of the 14 factors compared between the two stocks.

About Teradata

Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. Its business consulting services include support services for organizations to establish a data and analytic vision, enable a multi-cloud ecosystem architecture, and identify and operationalize analytical opportunities, as well as to ensure the analytical infrastructure delivers value. The company offers support and maintenance services. It serves clients in financial services, government, healthcare and life sciences, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

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.