Head-To-Head Analysis: Alarm.com (NASDAQ:ALRM) & Capstone Cos. (OTCMKTS:CAPC)

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

Insider & Institutional Ownership

91.7% of Alarm.com shares are held by institutional investors. 5.8% of Alarm.com shares are held by company insiders. Comparatively, 40.0% of Capstone Cos. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$939.83 million	2.95	$124.12 million	$2.37	23.53
Capstone Cos.	$140,000.00	17.73	-$960,000.00	($0.01)	-5.00

Alarm.com has higher revenue and earnings than Capstone Cos.. Capstone Cos. 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 Capstone Cos.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alarm.com	13.45%	14.04%	4.99%
Capstone Cos.	N/A	N/A	-24.56%

Risk and Volatility

Alarm.com has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Capstone Cos. has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Alarm.com and Capstone Cos., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	2	2	1	2.50
Capstone Cos.	0	0	0	0	0.00

Alarm.com currently has a consensus price target of $64.3333, suggesting a potential upside of 15.35%. Given Alarm.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe Alarm.com is more favorable than Capstone Cos..

Summary

Alarm.com beats Capstone Cos. on 13 of the 15 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 Capstone Cos.

Capstone Companies, Inc., through its subsidiaries, operates as a designer, manufacturer, and marketer of consumer products to simplify daily living through technology. The company offers Connected Chef, a purpose-built kitchen appliance tablet with an integrated platform for cooking accessories, such as cutting board, as well as Smart Mirrors. It sells its products through sales agents, as well as directly to home-goods chain retailers. The company was formerly known as CHDT Corporation and changed its name to Capstone Companies, Inc. in June 2012. Capstone Companies, Inc. was incorporated in 1996 and is headquartered in Deerfield Beach, Florida.