AlarmCom (NASDAQ: ALRM) and Everbridge (NASDAQ:EVBG) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for AlarmCom and Everbridge, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AlarmCom 0 4 6 0 2.60
Everbridge 0 0 10 0 3.00

AlarmCom presently has a consensus target price of $47.00, suggesting a potential upside of 29.01%. Everbridge has a consensus target price of $31.38, suggesting a potential downside of 2.68%. Given AlarmCom’s higher possible upside, equities research analysts plainly believe AlarmCom is more favorable than Everbridge.

Institutional and Insider Ownership

83.2% of AlarmCom shares are owned by institutional investors. Comparatively, 65.4% of Everbridge shares are owned by institutional investors. 78.5% of AlarmCom shares are owned by insiders. Comparatively, 41.4% of Everbridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares AlarmCom and Everbridge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AlarmCom 9.97% -42.00% 13.38%
Everbridge -17.10% -29.44% -10.70%

Earnings & Valuation

This table compares AlarmCom and Everbridge’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AlarmCom $261.11 million 6.58 $10.15 million $0.65 56.05
Everbridge $76.85 million 11.85 -$11.28 million ($0.60) -53.73

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

Summary

AlarmCom beats Everbridge on 8 of the 12 factors compared between the two stocks.

About AlarmCom

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.

About Everbridge

Everbridge, Inc. is a global software company. The Company provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to keep people safe and businesses running. During public safety threats, such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events, such as information technology (IT) outages, cyber-attacks or other incidents, such as product recalls or supply-chain interruptions, its Software as a Service (SaaS)-based platform enables its customers to aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes, and track progress on executing response plans. Its platform provides organizations with the ability to send and receive notifications based on the last known locations of people, not just based on a static office or home address.

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