Alarm.com (NASDAQ:ALRM) versus Alarum Technologies (NASDAQ:ALAR) Critical Survey

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

Volatility and Risk

Alarum Technologies has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

3.2% of Alarum Technologies shares are owned by institutional investors. Comparatively, 91.7% of Alarm.com shares are owned by institutional investors. 2.7% of Alarum Technologies 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alarum Technologies	22.21%	46.33%	31.59%
Alarm.com	13.54%	13.78%	5.62%

Analyst Ratings

This is a summary of recent ratings for Alarum Technologies and Alarm.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarum Technologies	0	0	3	0	3.00
Alarm.com	1	3	2	0	2.17

Alarum Technologies currently has a consensus price target of $29.00, suggesting a potential upside of 166.06%. Alarm.com has a consensus price target of $64.40, suggesting a potential upside of 3.37%. Given Alarum Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Alarum Technologies is more favorable than Alarm.com.

Earnings and Valuation

This table compares Alarum Technologies and Alarm.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarum Technologies	$31.56 million	2.38	-$5.53 million	$1.08	10.09
Alarm.com	$923.82 million	3.33	$81.04 million	$2.31	26.97

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.

Summary

Alarm.com beats Alarum Technologies on 8 of the 14 factors compared between the two stocks.

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.

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.