Alarm.com (NASDAQ:ALRM) & CoreCard (NYSE:CCRD) Critical Comparison

Alarm.com (NASDAQ:ALRM) and CoreCard (NYSE:CCRD) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alarm.com and CoreCard, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	3	2	0	2.17
CoreCard	0	1	0	0	2.00

Alarm.com presently has a consensus target price of $61.20, suggesting a potential upside of 24.01%. CoreCard has a consensus target price of $21.00, suggesting a potential upside of 11.70%. Given Alarm.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe Alarm.com is more favorable than CoreCard.

Insider and Institutional Ownership

91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 43.9% of CoreCard shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by insiders. Comparatively, 17.2% of CoreCard shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Alarm.com and CoreCard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alarm.com	13.21%	13.55%	5.14%
CoreCard	9.49%	10.52%	8.70%

Earnings and Valuation

This table compares Alarm.com and CoreCard”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$939.83 million	2.61	$124.12 million	$2.29	21.55
CoreCard	$57.40 million	2.55	$3.39 million	$0.67	28.06

Alarm.com has higher revenue and earnings than CoreCard. Alarm.com is trading at a lower price-to-earnings ratio than CoreCard, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Alarm.com has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, CoreCard has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

Alarm.com beats CoreCard on 11 of the 14 factors compared between the two stocks.

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.

About CoreCard

CoreCard Corporation, together with its subsidiaries, offers technology solutions and processing services to the financial technology and services market in the United States, Europe, and the Middle East. It designs, develops, and markets a suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions. The company's software solutions allow companies to offer various types of transacting account or card issuing program, as well as installment and revolving loans; set up and maintain account data; record advances and payments; assess fees, interests, and other charges; resolve disputes and chargebacks; manage collections of accounts receivable; generate reports; and settle transactions with financial institutions and network schemes. The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in December 2021. CoreCard Corporation was founded in 1973 and is headquartered in Norcross, Georgia.