Financial Survey: G4S (OTCMKTS:GFSZY) & Alarm.com (NASDAQ:ALRM)

G4S (OTCMKTS:GFSZY) and Alarm.com (NASDAQ:ALRM) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Institutional and Insider Ownership

91.7% of Alarm.com shares are held by institutional investors. 5.8% of Alarm.com shares are held 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.

Valuation and Earnings

This table compares G4S and Alarm.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
G4S	N/A	N/A	N/A	N/A	N/A
Alarm.com	$939.83 million	2.78	$124.12 million	$2.36	22.23

Alarm.com has higher revenue and earnings than G4S.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for G4S and Alarm.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
G4S	0	0	0	0	0.00
Alarm.com	0	3	0	2	2.80

Alarm.com has a consensus price target of $64.67, suggesting a potential upside of 23.25%. Given Alarm.com’s stronger consensus rating and higher possible upside, analysts plainly believe Alarm.com is more favorable than G4S.

Profitability

This table compares G4S and Alarm.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
G4S	N/A	N/A	N/A
Alarm.com	12.92%	14.26%	5.32%

Summary

Alarm.com beats G4S on 9 of the 9 factors compared between the two stocks.

About G4S

G4S plc, together with its subsidiaries, operates as an integrated security company in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence-based risk assessment, incident management, and travel advisory systems, such as symmetry incident management; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides retail technology solutions, comprising of Retail Cash Solutions, CASH360, and South Africa-Deposita; security advice, risk mitigation strategies, secure support, and integrated solutions; and offer custody, detention, rehabilitation, and care services. The company serves corporates, financial institutions, private energy/utilities, retail, leisure and consumers, private energy/utilities, transport, ports, and aviation. G4S plc was founded in 1901 and is headquartered in London, the United Kingdom. G4S plc is a subsidiary of Atlas UK Bidco Limited.

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.