MicroStrategy (NASDAQ:MSTR) and AlarmCom (NASDAQ:ALRM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Earnings & Valuation
This table compares MicroStrategy and AlarmCom’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$486.33 million||2.57||$34.35 million||$1.22||101.57|
|AlarmCom||$502.36 million||6.80||$53.33 million||$1.35||51.88|
AlarmCom has higher revenue and earnings than MicroStrategy. AlarmCom is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for MicroStrategy and AlarmCom, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MicroStrategy presently has a consensus target price of $140.00, indicating a potential upside of 12.98%. AlarmCom has a consensus target price of $66.00, indicating a potential downside of 5.77%. Given MicroStrategy’s higher probable upside, analysts clearly believe MicroStrategy is more favorable than AlarmCom.
Risk and Volatility
MicroStrategy has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, AlarmCom has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
This table compares MicroStrategy and AlarmCom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
70.0% of MicroStrategy shares are owned by institutional investors. Comparatively, 97.4% of AlarmCom shares are owned by institutional investors. 26.9% of MicroStrategy shares are owned by insiders. Comparatively, 20.8% of AlarmCom shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
AlarmCom beats MicroStrategy on 13 of the 15 factors compared between the two stocks.
MicroStrategy Incorporated provides enterprise analytics and mobility software platforms worldwide. It offers MicroStrategy Consulting that provides customers with assessment, advisory, architecture, and deployment services to guide their customers in defining, developing, and delivering business analytics solutions for their enterprises across various industries; and MicroStrategy Education, which consists of classroom-based courses, instructor-led courses, recorded courses, self-paced e-learning modules, customer on-site training, and enterprise E-Courseware options for large organizations in various languages. The company's products also include MicroStrategy's software, such as technical support services for customers, business partners, and prospects; and software maintenance and renewal contract services, as well as educational programs and other support services. MicroStrategy Incorporated provides its services through enterprise sales force and channel partners. It serves companies from a range of industries, including retail, consulting, technology, manufacturing, finance, banking, insurance, healthcare, education, and telecommunications, as well as the public sector. The company was founded in 1989 and is headquartered in Tysons Corner, Virginia.
Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, thermostats, garage doors, and video cameras; and high definition video monitoring solutions, such as live streaming, smart clip capture, secure cloud storage, video alerts, continuous HD recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions, including scenes button, which adjust multiple devices; smart thermostat schedules; responsive savings; precision comfort; energy usage and environmental monitoring; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, access control, operational insights, early problem identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; installation and support tools; business management services; and sales, marketing, and training services, as well as wellness solutions. The company serves residential and business subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is headquartered in Tysons, Virginia.
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