Alarm.com vs AT&T Which Is a Smarter Choice?

Alarm.com and AT&T are two prominent companies in the technology and telecommunication industries, each offering unique investment opportunities for shareholders. Alarm.com specializes in smart home security systems and home automation, catering to the growing demand for connected devices. On the other hand, AT&T is a leading provider of telecommunications services, offering wireless and wired services to consumers and businesses. Investors looking to capitalize on the advancements in technology and communication may find value in both Alarm.com and AT&T stocks.

Alarm.com or AT&T?

When comparing Alarm.com and AT&T, 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 AT&T.

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 AT&T has a dividend yield of 4.7%. 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, AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%.

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 26.44 and AT&T's P/E ratio at 18.79. 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 4.79 while AT&T's P/B ratio is 1.66.

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 1.00%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alarm.com's ROE at 18.18% and AT&T's ROE at 8.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.90 for Alarm.com and $23.26 for AT&T. Over the past year, Alarm.com's prices ranged from $51.87 to $77.29, with a yearly change of 49.02%. AT&T's prices fluctuated between $15.94 and $24.03, with a yearly change of 50.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.