Alarm.com vs Chubb Which Outperforms?

Alarm.com and Chubb are two leading companies in the security industry, providing a range of products and services to protect individuals and businesses. Alarm.com specializes in smart home security systems, while Chubb offers a wide array of security solutions, including monitoring services and insurance products. Both companies have seen strong growth in recent years, but investors may be evaluating which stock may provide a better return on investment. Let's take a closer look at how Alarm.com and Chubb stocks compare in terms of financial performance, market potential, and future outlook.

Alarm.com or Chubb?

When comparing Alarm.com and Chubb, 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 Chubb.

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 Chubb has a dividend yield of 1.25%. 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, Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.19%.

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 26.95 and Chubb's P/E ratio at 11.44. 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 4.88 while Chubb's P/B ratio is 1.74.

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 Chubb's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alarm.com's ROE at 18.18% and Chubb's ROE at 16.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.07 for Alarm.com and $282.12 for Chubb. Over the past year, Alarm.com's prices ranged from $51.87 to $77.29, with a yearly change of 49.02%. Chubb's prices fluctuated between $216.91 and $302.05, with a yearly change of 39.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.