Alarm.com (NASDAQ:ALRM – Get Free Report) and Alarum Technologies (NASDAQ:ALAR – Get Free Report) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Insider and Institutional Ownership
91.7% of Alarm.com shares are held by institutional investors. Comparatively, 3.2% of Alarum Technologies shares are held by institutional investors. 5.6% of Alarm.com shares are held by insiders. Comparatively, 2.7% of Alarum Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Alarm.com has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Alarum Technologies has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarm.com | 1 | 3 | 2 | 0 | 2.17 |
| Alarum Technologies | 0 | 0 | 3 | 0 | 3.00 |
Alarm.com currently has a consensus target price of $64.40, indicating a potential upside of 2.30%. Alarum Technologies has a consensus target price of $29.00, indicating a potential upside of 159.62%. Given Alarum Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Alarum Technologies is more favorable than Alarm.com.
Earnings & Valuation
This table compares Alarm.com and Alarum Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarm.com | $923.82 million | 3.37 | $81.04 million | $2.31 | 27.25 |
| Alarum Technologies | $31.56 million | 2.44 | -$5.53 million | $1.08 | 10.34 |
Alarm.com has higher revenue and earnings than Alarum Technologies. Alarum Technologies is trading at a lower price-to-earnings ratio than Alarm.com, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alarm.com and Alarum Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alarm.com | 13.54% | 13.78% | 5.62% |
| Alarum Technologies | 22.21% | 46.33% | 31.59% |
Summary
Alarm.com beats Alarum Technologies on 8 of the 14 factors compared between the two stocks.
About Alarm.com
Alarm.com Holdings, Inc. provides various Internet of Things (IoT) and solutions for residential, multi-family, small business, and enterprise commercial markets in North America and internationally. The company operates through two segments, Alarm.com and Other. It offers solutions to control and monitor security systems, as well as to IoT devices, including door locks, garage doors, thermostats, and video cameras; and video monitoring and analytics solutions, such as video analytics, escalated events, video doorbells, intelligent integration, live streaming, secure cloud storage, and video alerts. The company also provides scenes, video analytics triggers, thermostat schedules, responsive savings, precision comfort, energy usage monitoring, places feature, whole home water safety, and solar monitoring solutions, as well as heating, ventilation, and air conditioning monitoring services. In addition, it offers demand response programs, commercial grade video, commercial video analytics, access control, cell connectors, enterprise dashboard and multi-site management, energy savings, protection for valuables and inventory, temperature monitoring, and daily safeguard solutions. Further, the company provides a permission-based online portal that provides account management, sales, marketing, training, and support tools; a unified interface that displays key operational and customer experience indicators, including technician performance, system reliability and customer engagement metrics; installation and support services; MobileTech Application and Remote Toolkit; video health reports; smart gateway; AI-powered enhancements to professional monitoring and false alarm reduction; Web services and business intelligence; sales, marketing, and training services; and home builder programs. Additionally, it offers electric utility grid and water management, indoor gunshot detection, and health and wellness and data-rich emergency response solutions. The company was founded in 2000 and is based in Tysons, Virginia.
About Alarum Technologies
Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.
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