Hello Group (NASDAQ:MOMO – Get Free Report) and Alarm.com (NASDAQ:ALRM – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Institutional & Insider Ownership
51.0% of Hello Group shares are owned by institutional investors. Comparatively, 91.7% of Alarm.com shares are owned by institutional investors. 61.4% of Hello Group shares are owned by company insiders. Comparatively, 5.6% of Alarm.com 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.
Risk & Volatility
Hello Group has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hello Group | $11.74 billion | 0.08 | $275.72 million | $1.10 | 6.19 |
| Alarm.com | $905.18 million | 3.24 | $81.04 million | $1.69 | 34.60 |
Hello Group has higher revenue and earnings than Alarm.com. Hello Group is trading at a lower price-to-earnings ratio than Alarm.com, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Hello Group and Alarm.com, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hello Group | 1 | 3 | 1 | 0 | 2.00 |
| Alarm.com | 0 | 3 | 1 | 0 | 2.25 |
Hello Group currently has a consensus target price of $8.90, indicating a potential upside of 30.69%. Alarm.com has a consensus target price of $70.67, indicating a potential upside of 20.84%. Given Hello Group’s higher probable upside, analysts clearly believe Hello Group is more favorable than Alarm.com.
Profitability
This table compares Hello Group and Alarm.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hello Group | 13.38% | 13.61% | 9.51% |
| Alarm.com | 10.08% | 12.14% | 5.79% |
Summary
Hello Group beats Alarm.com on 7 of the 13 factors compared between the two stocks.
About Hello Group
Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.
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.
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