Alarm.com vs AMP Which Is More Profitable?

Alarm.com and AMP are two prominent companies in the home security and automation industry, both offering innovative products and services to enhance home security and convenience. While Alarm.com specializes in cloud-based security and smart home solutions, AMP focuses on providing integrated security systems for residential and commercial properties. Both companies have seen significant growth in recent years, but their stocks have performed differently in the market. This comparison will analyze key factors affecting the performance of Alarm.com and AMP stocks.

Alarm.com or AMP?

When comparing Alarm.com and AMP, 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 Alarm.com and AMP.

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. Alarm.com has a dividend yield of -%, while AMP has a dividend yield of 2.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alarm.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%.

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 Alarm.com P/E ratio at 24.18 and AMP's P/E ratio at 32.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alarm.com P/B ratio is 4.38 while AMP's P/B ratio is 1.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alarm.com has seen a 5-year revenue growth of 0.83%, while AMP's is -0.67%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alarm.com's ROE at 18.18% and AMP's ROE at 3.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.99 for Alarm.com and $0.66 for AMP. Over the past year, Alarm.com's prices ranged from $51.87 to $77.29, with a yearly change of 49.02%. AMP's prices fluctuated between $0.58 and $0.94, with a yearly change of 62.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.