Wrap Technologies (NASDAQ:WRAP – Get Free Report) and Alarm.com (NASDAQ:ALRM – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares Wrap Technologies and Alarm.com”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wrap Technologies | $4.50 million | 26.10 | -$5.88 million | ($0.30) | -7.60 |
| Alarm.com | $939.83 million | 2.79 | $124.12 million | $2.36 | 22.31 |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Wrap Technologies and Alarm.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wrap Technologies | 1 | 0 | 0 | 0 | 1.00 |
| Alarm.com | 0 | 3 | 0 | 2 | 2.80 |
Alarm.com has a consensus target price of $64.67, indicating a potential upside of 22.80%. Given Alarm.com’s stronger consensus rating and higher possible upside, analysts clearly believe Alarm.com is more favorable than Wrap Technologies.
Profitability
This table compares Wrap Technologies and Alarm.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wrap Technologies | -300.11% | -194.93% | -83.58% |
| Alarm.com | 12.92% | 14.26% | 5.32% |
Risk & Volatility
Wrap Technologies has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Institutional and Insider Ownership
8.8% of Wrap Technologies shares are held by institutional investors. Comparatively, 91.7% of Alarm.com shares are held by institutional investors. 33.3% of Wrap Technologies shares are held by company insiders. Comparatively, 5.8% of Alarm.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Alarm.com beats Wrap Technologies on 11 of the 14 factors compared between the two stocks.
About Wrap Technologies
Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.
About Alarm.com
Alarm.com Holdings, Inc. provides various Internet of Things (IoT) and solutions for residential, multi-family, small business, and enterprise commercial markets in North America and internationally. The company operates through two segments, Alarm.com and Other. It offers solutions to control and monitor security systems, as well as to IoT devices, including door locks, garage doors, thermostats, and video cameras; and video monitoring and analytics solutions, such as video analytics, escalated events, video doorbells, intelligent integration, live streaming, secure cloud storage, and video alerts. The company also provides scenes, video analytics triggers, thermostat schedules, responsive savings, precision comfort, energy usage monitoring, places feature, whole home water safety, and solar monitoring solutions, as well as heating, ventilation, and air conditioning monitoring services. In addition, it offers demand response programs, commercial grade video, commercial video analytics, access control, cell connectors, enterprise dashboard and multi-site management, energy savings, protection for valuables and inventory, temperature monitoring, and daily safeguard solutions. Further, the company provides a permission-based online portal that provides account management, sales, marketing, training, and support tools; a unified interface that displays key operational and customer experience indicators, including technician performance, system reliability and customer engagement metrics; installation and support services; MobileTech Application and Remote Toolkit; video health reports; smart gateway; AI-powered enhancements to professional monitoring and false alarm reduction; Web services and business intelligence; sales, marketing, and training services; and home builder programs. Additionally, it offers electric utility grid and water management, indoor gunshot detection, and health and wellness and data-rich emergency response solutions. The company was founded in 2000 and is based in Tysons, Virginia.
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