Fastly (NYSE:FSLY – Get Free Report) and Alkami Technology (NASDAQ:ALKT – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Profitability
This table compares Fastly and Alkami Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fastly | -31.02% | -15.22% | -9.70% |
| Alkami Technology | -17.47% | -13.43% | -10.34% |
Volatility & Risk
Fastly has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Alkami Technology has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fastly | $531.48 million | 1.86 | -$133.09 million | ($1.00) | -7.23 |
| Alkami Technology | $297.36 million | 10.38 | -$62.91 million | ($0.60) | -52.73 |
Alkami Technology has lower revenue, but higher earnings than Fastly. Alkami Technology is trading at a lower price-to-earnings ratio than Fastly, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Fastly and Alkami Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fastly | 1 | 6 | 0 | 1 | 2.13 |
| Alkami Technology | 0 | 3 | 7 | 0 | 2.70 |
Fastly presently has a consensus price target of $7.81, suggesting a potential upside of 8.06%. Alkami Technology has a consensus price target of $33.89, suggesting a potential upside of 7.11%. Given Fastly’s higher possible upside, equities research analysts clearly believe Fastly is more favorable than Alkami Technology.
Insider & Institutional Ownership
79.7% of Fastly shares are owned by institutional investors. Comparatively, 55.0% of Alkami Technology shares are owned by institutional investors. 6.7% of Fastly 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Alkami Technology beats Fastly on 8 of the 15 factors compared between the two stocks.
About Fastly
Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet. The company offers network services to speed up and optimize the delivery of web and application traffic; device detection and geolocation; content delivery network, such as dynamic site acceleration, origin shield, instant purge, surrogate keys, programmatic control, content compression, reliability features, fanout, domainr, privacy, and modern protocols and performance services; and video/ streaming solutions and services, including live streaming, video on demand, and media shield. It also provides security solutions, such as DDoS protection, next-gen WAF, bot management, API and ATO protection, advanced rate limiting, and compliance services; load balancing; image optimization; transport layer security (TLS), platform TLS, and certainly; and origin connect. It serves customers operating in digital publishing, media and entertainment, technology, online education, travel and hospitality, and financial services industries. The company was formerly known as SkyCache, Inc. and changed its name to Fastly, Inc. in May 2012. Fastly, Inc. was incorporated in 2011 and is headquartered in San Francisco, 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.
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