Alarm.com (NASDAQ:ALRM) and Check Point Software Technologies (NASDAQ:CHKP) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Risk & Volatility
Alarm.com has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Alarm.com and Check Point Software Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Alarm.com | 0 | 2 | 5 | 1 | 2.88 |
Check Point Software Technologies | 3 | 13 | 5 | 0 | 2.10 |
Alarm.com presently has a consensus price target of $73.8571, indicating a potential downside of 21.08%. Check Point Software Technologies has a consensus price target of $124.55, indicating a potential upside of 10.38%. Given Check Point Software Technologies' higher possible upside, analysts clearly believe Check Point Software Technologies is more favorable than Alarm.com.
Institutional & Insider Ownership
93.4% of Alarm.com shares are held by institutional investors. Comparatively, 67.9% of Check Point Software Technologies shares are held by institutional investors. 20.8% of Alarm.com shares are held by insiders. Comparatively, 29.0% of Check Point Software Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Alarm.com and Check Point Software Technologies' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Alarm.com | $502.36 million | 9.11 | $53.33 million | $1.35 | 69.04 |
Check Point Software Technologies | $1.99 billion | 8.23 | $825.70 million | $5.51 | 20.49 |
Check Point Software Technologies has higher revenue and earnings than Alarm.com. Check Point Software 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.
Profitability
This table compares Alarm.com and Check Point Software Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Alarm.com | 12.64% | 17.50% | 10.69% |
Check Point Software Technologies | 41.47% | 25.10% | 15.40% |
Summary
Check Point Software Technologies beats Alarm.com on 8 of the 14 factors compared between the two stocks.