Head to Head Analysis: SuperCom (NASDAQ:SPCB) versus Alarm.com (NASDAQ:ALRM)

Alarm.com (NASDAQ:ALRM) and SuperCom (NASDAQ:SPCB) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$939.83 million	2.76	$124.12 million	$2.38	21.82
SuperCom	$27.64 million	1.23	$660,000.00	$0.43	26.95

Alarm.com has higher revenue and earnings than SuperCom. Alarm.com is trading at a lower price-to-earnings ratio than SuperCom, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Alarm.com has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, SuperCom has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alarm.com	13.27%	13.84%	5.03%
SuperCom	11.00%	45.38%	17.14%

Institutional & Insider Ownership

91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 47.8% of SuperCom shares are owned by institutional investors. 5.8% of Alarm.com shares are owned by company insiders. Comparatively, 18.3% of SuperCom shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Alarm.com and SuperCom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	2	2	2	2.71
SuperCom	0	0	1	0	3.00

Alarm.com currently has a consensus price target of $64.33, suggesting a potential upside of 23.86%. SuperCom has a consensus price target of $18.00, suggesting a potential upside of 55.31%. Given SuperCom’s stronger consensus rating and higher possible upside, analysts plainly believe SuperCom is more favorable than Alarm.com.

Summary

Alarm.com beats SuperCom on 8 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 SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.