Critical Survey: Allied Security Innovations (OTCMKTS:ADSV) vs. Alarm.com (NASDAQ:ALRM)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Allied Security Innovations and Alarm.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Security Innovations	0	0	0	0	0.00
Alarm.com	0	3	0	2	2.80

Alarm.com has a consensus price target of $64.67, suggesting a potential upside of 24.12%. Given Alarm.com’s stronger consensus rating and higher probable upside, analysts plainly believe Alarm.com is more favorable than Allied Security Innovations.

Valuation and Earnings

This table compares Allied Security Innovations and Alarm.com”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Security Innovations	N/A	N/A	N/A	N/A	N/A
Alarm.com	$939.83 million	2.77	$124.12 million	$2.36	22.08

Alarm.com has higher revenue and earnings than Allied Security Innovations.

Institutional and Insider Ownership

91.7% of Alarm.com shares are owned by institutional investors. 22.1% of Allied Security Innovations shares are owned by company insiders. Comparatively, 5.8% of Alarm.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allied Security Innovations	N/A	N/A	N/A
Alarm.com	12.92%	14.26%	5.32%

Risk and Volatility

Allied Security Innovations has a beta of -3.06, meaning that its share price is 406% less volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

Alarm.com beats Allied Security Innovations on 9 of the 10 factors compared between the two stocks.

About Allied Security Innovations

Allied Security Innovations, Inc., through its subsidiary, CGM Applied Security Technologies, Inc., manufactures and distributes indicative and barrier security seals, security tapes, and related packaging security systems in the United States and internationally. It also provides protective security products for palletized cargo; and physical security systems for tractors, trailers, and containers, as well as various specialized authentication products. The company's principal products include tapes, self-wound security tapes, void labels and void tapes for bag closure, SUPERSEALS, custom coated products, conductive inks and membrane switch components, electro-magnetic asset protection systems, locks, sentry sensors, and other related items. It provides its products for use in aircraft and truck seals, fiber and steel drum seals, motor vehicle inspection seals, pharmaceutical packaging, box or container closure seals, cash bag components, computer seals, validation devices, general security products, and law enforcement agencies. The company also develops, assembles, markets, and installs computer systems, which capture video, digitally captured images, and scanned images; digitizes the image; links the digitized images to text/data; and stores the image and text on a computer database, which allows for transmitting the image and text by computer or telecommunication links to remote locations. In addition, it offers maintenance and support, and related services; and software. The company serves producers of various items, such as perfumes, computers, silicon chips, jewelry, and cash and negotiable documents. The company was formerly known as Digital Descriptor Systems, Inc. and changed its name Allied Security Innovations, Inc. in December 2006. Allied Security Innovations, Inc. was founded in 1986 and is based in West Palm Beach, Florida.

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.