Alarm.com vs IDT Which Performs Better?

Alarm.com and IDT are two companies in the home security industry that have garnered attention from investors. Alarm.com, a pioneer in smart home technology, offers cloud-based security systems for residential and commercial properties. On the other hand, IDT Corporation is a telecommunications company that provides various services, including security monitoring and home automation. Both companies have seen fluctuations in their stock prices due to market trends and industry competition. Investors are closely watching these stocks to determine their potential for growth and profitability.

Alarm.com or IDT?

When comparing Alarm.com and IDT, 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 IDT.

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 IDT has a dividend yield of 0.3%. 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, IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.13%.

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 IDT's P/E ratio at 17.05. 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 IDT's P/B ratio is 4.84.

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 IDT's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alarm.com's ROE at 18.18% and IDT's ROE at 31.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.90 for Alarm.com and $49.66 for IDT. Over the past year, Alarm.com's prices ranged from $51.87 to $77.29, with a yearly change of 49.02%. IDT's prices fluctuated between $32.08 and $58.77, with a yearly change of 83.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.