Head to Head Contrast: Alarm.com (NASDAQ:ALRM) versus WISeKey International (NASDAQ:WKEY)

Alarm.com (NASDAQ:ALRM) and WISeKey International (NASDAQ:WKEY) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Alarm.com and WISeKey International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	2	2	2	2.71
WISeKey International	0	0	1	0	3.00

Alarm.com currently has a consensus target price of $64.33, indicating a potential upside of 22.03%. WISeKey International has a consensus target price of $4.00, indicating a potential downside of 40.21%. Given Alarm.com’s higher probable upside, equities research analysts plainly believe Alarm.com is more favorable than WISeKey International.

Insider and Institutional Ownership

91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 0.3% of WISeKey International shares are owned by institutional investors. 5.8% of Alarm.com shares are owned by insiders. Comparatively, 33.5% of WISeKey International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Alarm.com has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Earnings and Valuation

This table compares Alarm.com and WISeKey International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$939.83 million	2.80	$124.12 million	$2.38	22.15
WISeKey International	$11.88 million	4.60	-$13.45 million	N/A	N/A

Alarm.com has higher revenue and earnings than WISeKey International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alarm.com	13.27%	13.84%	5.03%
WISeKey International	N/A	N/A	N/A

Summary

Alarm.com beats WISeKey International on 9 of the 13 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 WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.