Head-To-Head Analysis: AlarmCom (NASDAQ:ALRM) vs. Okta (NASDAQ:OKTA)
AlarmCom (NASDAQ:ALRM) and Okta (NASDAQ:OKTA) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
Risk and Volatility
AlarmCom has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Okta has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
99.9% of AlarmCom shares are held by institutional investors. Comparatively, 73.9% of Okta shares are held by institutional investors. 26.0% of AlarmCom shares are held by company insiders. Comparatively, 14.7% of Okta shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings for AlarmCom and Okta, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AlarmCom currently has a consensus target price of $68.89, indicating a potential upside of 72.96%. Okta has a consensus target price of $144.00, indicating a potential upside of 22.27%. Given AlarmCom’s stronger consensus rating and higher possible upside, equities analysts plainly believe AlarmCom is more favorable than Okta.
This table compares AlarmCom and Okta’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares AlarmCom and Okta’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AlarmCom||$502.36 million||3.86||$53.33 million||$1.35||29.50|
|Okta||$586.07 million||24.67||-$208.91 million||($1.39)||-84.73|
AlarmCom has higher earnings, but lower revenue than Okta. Okta is trading at a lower price-to-earnings ratio than AlarmCom, indicating that it is currently the more affordable of the two stocks.
AlarmCom beats Okta on 11 of the 15 factors compared between the two stocks.
Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, thermostats, garage doors, and video cameras; and high definition video monitoring solutions, such as live streaming, smart clip capture, secure cloud storage, video alerts, continuous HD recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions, including scenes button, which adjust multiple devices; smart thermostat schedules; responsive savings; precision comfort; energy usage and environmental monitoring; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, access control, operational insights, early problem identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; installation and support tools; business management services; and sales, marketing, and training services, as well as wellness solutions. The company serves residential and business subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is headquartered in Tysons, Virginia.
Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials; Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for cloud, mobile, and Web applications, as well as for data; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; and API Access Management that enables organizations to secure APIs.It also offers customer support and training, and professional services. Okta, Inc. sells its products directly to customers through sales force, as well as through channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was founded in 2009 and is headquartered in San Francisco, California.
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