Critical Contrast: Alarm.com (NASDAQ:ALRM) and Cadre (NYSE:CDRE)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Alarm.com and Cadre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	3	0	2	2.50
Cadre	1	1	4	1	2.71

Alarm.com presently has a consensus price target of $57.00, suggesting a potential upside of 23.08%. Cadre has a consensus price target of $43.00, suggesting a potential upside of 33.69%. Given Cadre’s stronger consensus rating and higher probable upside, analysts plainly believe Cadre is more favorable than Alarm.com.

Institutional and Insider Ownership

91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 44.0% of Cadre shares are owned by institutional investors. 5.8% of Alarm.com shares are owned by company insiders. Comparatively, 31.5% of Cadre shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Alarm.com has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Cadre has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alarm.com	13.11%	14.79%	5.67%
Cadre	7.23%	13.50%	5.86%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$1.01 billion	2.27	$132.57 million	$2.46	18.83
Cadre	$610.31 million	2.25	$44.14 million	$1.07	30.06

Alarm.com has higher revenue and earnings than Cadre. Alarm.com is trading at a lower price-to-earnings ratio than Cadre, indicating that it is currently the more affordable of the two stocks.

Summary

Alarm.com beats Cadre on 8 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 Cadre

Cadre Holdings, Inc. manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, the Department of Energy, Los Alamos National Laboratories, Waste Isolation Plant, and various foreign government agencies. Cadre Holdings, Inc. was founded in 1964 and is headquartered in Jacksonville, Florida.