Alarm.com (NASDAQ:ALRM – Get Free Report) and AvePoint (NASDAQ:AVPT – Get Free Report) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Alarm.com and AvePoint, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarm.com | 0 | 4 | 1 | 0 | 2.20 |
| AvePoint | 0 | 1 | 3 | 0 | 2.75 |
Alarm.com currently has a consensus price target of $69.00, indicating a potential upside of 28.13%. AvePoint has a consensus price target of $12.75, indicating a potential upside of 10.49%. Given Alarm.com’s higher probable upside, research analysts clearly believe Alarm.com is more favorable than AvePoint.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarm.com | $905.18 million | 2.99 | $81.04 million | $1.69 | 31.86 |
| AvePoint | $299.88 million | 7.13 | -$21.50 million | ($0.08) | -144.25 |
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.
Profitability
This table compares Alarm.com and AvePoint’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alarm.com | 11.92% | 13.00% | 5.73% |
| AvePoint | -4.77% | -6.66% | -3.32% |
Institutional and Insider Ownership
91.7% of Alarm.com shares are held by institutional investors. Comparatively, 44.5% of AvePoint shares are held by institutional investors. 5.6% of Alarm.com shares are held by company insiders. Comparatively, 27.8% of AvePoint shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Alarm.com has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, AvePoint has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Summary
Alarm.com beats AvePoint on 10 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 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.
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