AL vs Alarm.com Which Outperforms?

AL, also known as Alere Inc., is a diversified health services company that specializes in diagnostics, healthcare management, and wellness solutions. On the other hand, Alarm.com Holdings Inc. is a technology company that provides cloud-based services for smart home and business security. Both companies operate in different sectors but have established themselves as leaders in their respective industries. Investors looking to diversify their portfolios may consider both AL and Alarm.com stocks for potential growth opportunities.

AL or Alarm.com?

When comparing AL and Alarm.com, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AL and Alarm.com.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AL has a dividend yield of -%, while Alarm.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alarm.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AL P/E ratio at -15.56 and Alarm.com's P/E ratio at 26.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -36.54 while Alarm.com's P/B ratio is 4.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Alarm.com's is 1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Alarm.com's ROE at 18.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.57 for AL and $65.90 for Alarm.com. Over the past year, AL's prices ranged from HK$0.48 to HK$0.98, with a yearly change of 104.17%. Alarm.com's prices fluctuated between $51.87 and $77.29, with a yearly change of 49.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.