AlarmCom Hldg (NASDAQ: ALRM) and Solera Holdings (NYSE:SLH) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitabiliy.

Insider and Institutional Ownership

63.0% of AlarmCom Hldg shares are held by institutional investors. 78.5% of AlarmCom Hldg shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares AlarmCom Hldg and Solera Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AlarmCom Hldg $276.26 million 6.02 $47.05 million $0.22 163.10
Solera Holdings N/A N/A N/A N/A N/A

AlarmCom Hldg has higher revenue and earnings than Solera Holdings.

Analyst Ratings

This is a summary of current ratings and price targets for AlarmCom Hldg and Solera Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AlarmCom Hldg 0 4 9 0 2.69
Solera Holdings 0 0 0 0 N/A

AlarmCom Hldg presently has a consensus price target of $34.80, indicating a potential downside of 3.01%. Given AlarmCom Hldg’s higher probable upside, analysts plainly believe AlarmCom Hldg is more favorable than Solera Holdings.

Profitability

This table compares AlarmCom Hldg and Solera Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AlarmCom Hldg 5.34% 8.15% 5.33%
Solera Holdings 18.15% N/A 6.01%

Summary

AlarmCom Hldg beats Solera Holdings on 6 of the 8 factors compared between the two stocks.

AlarmCom Hldg Company Profile

Alarm.com Holdings, Inc. is a platform solution for the connected property. The Company offers a suite of cloud-based solutions for the smart home and business, including interactive security, video monitoring, intelligent automation and energy management. The Company operates through two segments: Alarm.com and Other. The Alarm.com segment represents its cloud-based platform for the intelligently connected property solutions. The Other segment is focused on researching and developing home and commercial automation and energy management products and services for sale in adjacent markets. Its solutions are used in both smart homes and businesses. It is involved in designing and manufacturing various types of hardware that enable its solutions, including cellular communication modules, image sensor, video cameras and alarm.com smart thermostat. The Company offers a suite of high definition, Internet protocol (IP), video cameras to enable its video monitoring services.

Solera Holdings Company Profile

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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