Palantir Technologies (NYSE:PLTR) & Alkami Technology (NASDAQ:ALKT) Head-To-Head Contrast

Palantir Technologies (NYSE:PLTR) and Alkami Technology (NASDAQ:ALKT) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider & Institutional Ownership

45.7% of Palantir Technologies shares are held by institutional investors. Comparatively, 55.0% of Alkami Technology shares are held by institutional investors. 12.9% of Palantir Technologies shares are held by company insiders. Comparatively, 38.0% of Alkami Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Palantir Technologies has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Palantir Technologies	12.79%	8.28%	6.50%
Alkami Technology	-20.42%	-15.31%	-11.29%

Valuation and Earnings

This table compares Palantir Technologies and Alkami Technology’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palantir Technologies	$2.23 billion	27.20	$209.82 million	$0.12	226.52
Alkami Technology	$264.83 million	12.31	-$62.91 million	($0.60)	-55.72

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

Analyst Recommendations

This is a summary of recent recommendations for Palantir Technologies and Alkami Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	7	4	4	0	1.80
Alkami Technology	0	3	7	0	2.70

Palantir Technologies currently has a consensus price target of $21.32, suggesting a potential downside of 21.55%. Alkami Technology has a consensus price target of $28.56, suggesting a potential downside of 14.58%. Given Alkami Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Alkami Technology is more favorable than Palantir Technologies.

Summary

Palantir Technologies beats Alkami Technology on 9 of the 14 factors compared between the two stocks.

About Palantir Technologies

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform (AIP) that provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations' actions and processes into tools for humans and LLM-driven agents. The company was incorporated in 2003 and is headquartered in Denver, Colorado.

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.