Reviewing Halma (OTCMKTS:HLMAF) & Alarm.com (NASDAQ:ALRM)

Halma (OTCMKTS:HLMAF) and Alarm.com (NASDAQ:ALRM) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Halma and Alarm.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halma	$2.87 billion	6.48	$378.18 million	N/A	N/A
Alarm.com	$939.83 million	2.75	$124.12 million	$2.36	21.94

Halma has higher revenue and earnings than Alarm.com.

Profitability

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

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

Risk & Volatility

Halma has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Halma and Alarm.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halma	1	4	2	3	2.70
Alarm.com	0	3	0	2	2.80

Alarm.com has a consensus price target of $64.67, indicating a potential upside of 24.91%. Given Alarm.com’s stronger consensus rating and higher possible upside, analysts plainly believe Alarm.com is more favorable than Halma.

Institutional and Insider Ownership

91.7% of Alarm.com shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Alarm.com beats Halma on 7 of the 13 factors compared between the two stocks.

About Halma

Halma plc, together its subsidiaries, provides technology solutions in the safety, health, and environmental markets in the United States, Mainland Europe, the United Kingdom, the Asia Pacific, Africa, the Middle East, and internationally. It operates through three segments: Safety, Environmental & Analysis, and Medical. The Safety segment provides fire safety, fire detection and fire suppression; safe movement in public, commercial, and industrial spaces; elevator safety; communications in emergencies; control of access in potentially hazardous industrial and commercial environments; electrical safety; and the safe management of pipelines and storage assets solutions. This segment serves shops and restaurants, healthcare facilities, and offices and stadiums; industrial and logistics assets; public spaces and critical infrastructure; and aerospace, and rail and automotive markets. The Environmental & Analysis segment offers optical, optoelectronic, and spectral imaging systems; environmental monitoring, water and waste water analysis and treatment, gas analysis and detection, and optical analysis systems. It serves the optical analysis, water analysis and treatment, gas detection, and environmental monitoring markets. The Medical segment provides critical fluidic components used by medical diagnostics and original equipment manufacturers; components, devices and systems that provide information and analytics to understand patient health and enable providers to make decisions across the continuum of care; technologies and solutions to enable in-vitro diagnostic systems and life-science discoveries and development; and technologies that enable treatment across clinical specialties. This segment serves the life sciences, health assessment and analytics, and therapeutic solutions market. The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.

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.