Alarm.com (NASDAQ:ALRM) versus AvePoint (NASDAQ:AVPT) Head-To-Head Comparison

AvePoint (NASDAQ:AVPT) and Alarm.com (NASDAQ:ALRM) are both mid-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations for AvePoint and Alarm.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	1	3	0	2.75
Alarm.com	0	4	1	0	2.20

AvePoint presently has a consensus price target of $12.75, indicating a potential upside of 8.14%. Alarm.com has a consensus price target of $69.00, indicating a potential upside of 27.28%. Given Alarm.com’s higher probable upside, analysts clearly believe Alarm.com is more favorable than AvePoint.

Institutional & Insider Ownership

44.5% of AvePoint shares are owned by institutional investors. Comparatively, 91.7% of Alarm.com shares are owned by institutional investors. 27.8% of AvePoint shares are owned by insiders. Comparatively, 5.6% of Alarm.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares AvePoint and Alarm.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvePoint	-4.77%	-6.66%	-3.32%
Alarm.com	11.92%	13.00%	5.73%

Valuation and Earnings

This table compares AvePoint and Alarm.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvePoint	$299.88 million	7.28	-$21.50 million	($0.08)	-147.38
Alarm.com	$905.18 million	3.01	$81.04 million	$1.69	32.08

Alarm.com has higher revenue and earnings than AvePoint. AvePoint is trading at a lower price-to-earnings ratio than Alarm.com, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

AvePoint has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Summary

Alarm.com beats AvePoint on 10 of the 14 factors compared between the two stocks.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

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.