Comparing Alarm.com (NASDAQ:ALRM) and Guardforce AI (NASDAQ:GFAI)

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

Profitability

This table compares Alarm.com and Guardforce AI’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%
Guardforce AI	N/A	N/A	N/A

Earnings and Valuation

This table compares Alarm.com and Guardforce AI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$1.01 billion	2.18	$132.57 million	$2.46	18.06
Guardforce AI	$36.35 million	0.25	-$5.86 million	N/A	N/A

Alarm.com has higher revenue and earnings than Guardforce AI.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Alarm.com and Guardforce AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	4	0	1	2.17
Guardforce AI	1	0	1	0	2.00

Alarm.com currently has a consensus target price of $57.00, indicating a potential upside of 28.29%. Guardforce AI has a consensus target price of $4.50, indicating a potential upside of 946.76%. Given Guardforce AI’s higher possible upside, analysts plainly believe Guardforce AI is more favorable than Alarm.com.

Institutional and Insider Ownership

91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 2.0% of Guardforce AI shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by insiders. Comparatively, 76.7% of Guardforce AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Alarm.com has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Guardforce AI has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.

Summary

Alarm.com beats Guardforce AI 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 Guardforce AI

Guardforce AI Co., Limited offers cash solutions and cash handling services in Thailand. The company operates through four segments: Secured Logistics Business, General Security Solutions, Robotics Solution Business, and Information Security Business. Its services include cash-in-transit, vehicles to banks, ATM management, cash center operations, cash processing, coin processing, consolidate cash center, and cheque center services, as well as cash deposit machine solutions, such as cash deposit management and express cash services. The company also sells and rents robots; and sells and installs Rapid7 software, as well as provision of integrated alarm security system installation, PCI ASV scan, and penetration testing services. Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was founded in 1982 and is based in Singapore.