Alight (NYSE:ALIT – Get Free Report) and Rimini Street (NASDAQ:RMNI – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Earnings and Valuation
This table compares Alight and Rimini Street”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alight | $3.36 billion | 1.07 | -$345.00 million | ($0.48) | -13.75 |
Rimini Street | $426.65 million | 0.58 | $26.06 million | ($0.37) | -7.32 |
Rimini Street has lower revenue, but higher earnings than Alight. Alight is trading at a lower price-to-earnings ratio than Rimini Street, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alight | 0 | 1 | 8 | 0 | 2.89 |
Rimini Street | 0 | 1 | 1 | 0 | 2.50 |
Alight presently has a consensus price target of $10.61, suggesting a potential upside of 60.77%. Rimini Street has a consensus price target of $5.25, suggesting a potential upside of 93.73%. Given Rimini Street’s higher possible upside, analysts plainly believe Rimini Street is more favorable than Alight.
Institutional and Insider Ownership
96.7% of Alight shares are held by institutional investors. Comparatively, 73.8% of Rimini Street shares are held by institutional investors. 5.3% of Alight shares are held by insiders. Comparatively, 41.0% of Rimini Street shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Alight has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Rimini Street has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Profitability
This table compares Alight and Rimini Street’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Alight | -7.95% | 5.61% | 2.52% |
Rimini Street | -7.87% | -83.26% | 10.79% |
Summary
Rimini Street beats Alight on 8 of the 14 factors compared between the two stocks.
About Alight
Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.
About Rimini Street
Rimini Street, Inc. provides enterprise software products, services, and support. The company engages in the provision of support services for Oracle and SAP enterprise software products. It also provides Rimini ONE, an outsourcing option that offers a set of unified and integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize its clients’ application, database, and technology enterprise software; Rimini Support, a mission-critical support for Oracle, SAP, proprietary and open-source database, and technology software; Rimini Manage, a suite of managed services for application and database software; Rimini Protect, a suite of personalized software security services and solutions; and Rimini Connect, a suite of managed interoperability solutions for browsers, operating systems, and email systems. In addition, the company offers Rimini Watch, a suite of observability solutions that include monitoring and system health check solutions; Rimini Consult, a suite of professional services for clients’ enterprise software customization, configuration, implementation, integration, interoperability, migration, staff augmentation, and other project needs; and Rimini Custom, a program that expands support and related services to a broader portfolio of enterprise software. The company serves Fortune 500 companies and Fortune Global 100 companies across various industries. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was incorporated in 2005 and is headquartered in Las Vegas, Nevada.
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