Alarm.com (NASDAQ:ALRM – Get Free Report) and Domo (NASDAQ:DOMO – Get Free Report) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
Alarm.com has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Domo has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500.
Insider & Institutional Ownership
91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by company insiders. Comparatively, 14.0% of Domo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarm.com | $905.18 million | 2.93 | $81.04 million | $1.69 | 31.28 |
| Domo | $318.37 million | 0.88 | -$75.57 million | ($2.10) | -3.49 |
Alarm.com has higher revenue and earnings than Domo. Domo 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 Recommendations
This is a breakdown of recent ratings for Alarm.com and Domo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarm.com | 0 | 4 | 1 | 0 | 2.20 |
| Domo | 0 | 4 | 1 | 0 | 2.20 |
Alarm.com presently has a consensus target price of $69.00, indicating a potential upside of 30.51%. Domo has a consensus target price of $9.60, indicating a potential upside of 30.88%. Given Domo’s higher possible upside, analysts clearly believe Domo is more favorable than Alarm.com.
Profitability
This table compares Alarm.com and Domo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alarm.com | 11.92% | 13.00% | 5.73% |
| Domo | -25.32% | N/A | -38.46% |
Summary
Alarm.com beats Domo on 9 of the 12 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 Domo
Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.
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