Alarum Technologies (NASDAQ:ALAR) versus Tuya (NYSE:TUYA) Critical Comparison

Alarum Technologies (NASDAQ:ALAR – Get Rating) and Tuya (NYSE:TUYA – Get Rating) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Alarum Technologies and Tuya, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarum Technologies	0	0	0	0	N/A
Tuya	0	1	0	0	2.00

Institutional & Insider Ownership

7.0% of Alarum Technologies shares are held by institutional investors. Comparatively, 7.1% of Tuya shares are held by institutional investors. 2.7% of Alarum Technologies shares are held by company insiders. Comparatively, 2.1% of Tuya shares are held by company 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.

Earnings and Valuation

This table compares Alarum Technologies and Tuya’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarum Technologies	$10.28 million	0.54	-$13.13 million	($4.17)	-0.41
Tuya	$208.17 million	4.41	-$146.18 million	($0.27)	-6.81

Alarum Technologies has higher earnings, but lower revenue than Tuya. Tuya is trading at a lower price-to-earnings ratio than Alarum Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alarum Technologies and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alarum Technologies	-85.00%	-58.15%	-42.84%
Tuya	-70.22%	-14.67%	-13.32%

Summary

Tuya beats Alarum Technologies on 7 of the 10 factors compared between the two stocks.

About Alarum Technologies

(Get Rating)

Alarum Technologies Ltd. engages in the provision of zero trust access solutions. It operates through the following segments: Enterprise Cybersecurity, Enterprise Privacy, and Consumer Cybersecurity and Privacy. The Enterprise Cybersecurity segment offers solutions designed for cloud, on-premises, and hybrid networks, mitigate attacks on enterprises’ business-critical services and sensitive data, while ensuring uninterrupted business continuity. The Enterprise Privacy segment enables customers to collect data anonymously at any scale from any public sources over the web, using a unique hybrid network. The Consumer Cybersecurity and Privacy segment includes a wide security blanket against ransomware, viruses, phishing, and other online threats as well as a powerful, secured and encrypted connection, masking consumers online activity, and keeping users safe from hackers. Its products include ZoneZero – Perimeter Access, ZoneZero SDP, ZoneZero VPN, ZoneZero MFA, and Secure File Access. The company was founded by Avi Ben-David, Daniel Shachar, Amir Mizhar, and Eitan Bremler in October 1989 and is headquartered in Herzliya Herzliya, Israel.

About Tuya

(Get Rating)

Tuya Inc. develops Internet of Things (IoT) cloud platform worldwide. The company provides IoT Platform-as-a-Service that enables brands, original equipment manufacturers, and developers to develop, launch, manage, and monetize smart devices and services; industry Software-as-a-Service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers a wide range of cloud-based value-added services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company sells finished smart devices. It offers its solutions to smart home, smart business, healthcare, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.