Reviewing Halma (OTCMKTS:HLMAF) & Alarm.com (NASDAQ:ALRM)

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$939.83 million	2.71	$124.12 million	$2.36	21.62
Halma	$2.87 billion	6.46	$378.18 million	N/A	N/A

Halma has higher revenue and earnings than Alarm.com.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alarm.com and Halma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	0	3	0	2	2.80
Halma	1	3	2	4	2.90

Alarm.com currently has a consensus price target of $64.67, suggesting a potential upside of 26.75%. Given Alarm.com’s higher probable upside, research analysts plainly believe Alarm.com is more favorable than Halma.

Institutional & Insider Ownership

91.7% of Alarm.com shares are held by institutional investors. 5.8% of Alarm.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Alarm.com has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Halma has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Summary

Halma beats Alarm.com on 7 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 Halma

Halma plc, together its subsidiaries, provides technology solutions in the safety, health, and environmental markets in the United States, Mainland Europe, the United Kingdom, the Asia Pacific, Africa, the Middle East, and internationally. It operates through three segments: Safety, Environmental & Analysis, and Medical. The Safety segment provides fire safety, fire detection and fire suppression; safe movement in public, commercial, and industrial spaces; elevator safety; communications in emergencies; control of access in potentially hazardous industrial and commercial environments; electrical safety; and the safe management of pipelines and storage assets solutions. This segment serves shops and restaurants, healthcare facilities, and offices and stadiums; industrial and logistics assets; public spaces and critical infrastructure; and aerospace, and rail and automotive markets. The Environmental & Analysis segment offers optical, optoelectronic, and spectral imaging systems; environmental monitoring, water and waste water analysis and treatment, gas analysis and detection, and optical analysis systems. It serves the optical analysis, water analysis and treatment, gas detection, and environmental monitoring markets. The Medical segment provides critical fluidic components used by medical diagnostics and original equipment manufacturers; components, devices and systems that provide information and analytics to understand patient health and enable providers to make decisions across the continuum of care; technologies and solutions to enable in-vitro diagnostic systems and life-science discoveries and development; and technologies that enable treatment across clinical specialties. This segment serves the life sciences, health assessment and analytics, and therapeutic solutions market. The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.