Alarm.com (NASDAQ:ALRM – Get Free Report) and WM Technology (NASDAQ:MAPS – Get Free Report) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Risk & Volatility
Alarm.com has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, WM Technology has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Insider and Institutional Ownership
91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 22.0% of WM Technology shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by insiders. Comparatively, 41.3% of WM Technology 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.
Profitability
This table compares Alarm.com and WM Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alarm.com | 9.19% | 11.61% | 5.45% |
| WM Technology | -56.88% | -25.02% | -15.37% |
Valuation & Earnings
This table compares Alarm.com and WM Technology’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarm.com | $881.68 million | 3.92 | $81.04 million | $1.53 | 45.23 |
| WM Technology | $215.53 million | 0.90 | -$115.99 million | ($1.23) | -1.05 |
Alarm.com has higher revenue and earnings than WM Technology. WM Technology is trading at a lower price-to-earnings ratio than Alarm.com, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Alarm.com and WM Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarm.com | 0 | 2 | 3 | 1 | 2.83 |
| WM Technology | 0 | 0 | 1 | 0 | 3.00 |
Alarm.com presently has a consensus price target of $68.83, suggesting a potential downside of 0.53%. Given Alarm.com’s higher possible upside, equities research analysts plainly believe Alarm.com is more favorable than WM Technology.
Summary
Alarm.com beats WM Technology on 13 of the 15 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 WM Technology
WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and education and learning information to help newer consumers learn about the types of products to purchase. It also provides monthly subscription-based business software solutions, including WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights as well as other add-on products, such as WM Ads, WM AdSuite, WM Customer Relationship Management, WM Dispatch, and WM Screens. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.
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