Alarm.com (NASDAQ:ALRM) vs. Cadre (NYSE:CDRE) Head-To-Head Contrast

Cadre (NYSE:CDRE) and Alarm.com (NASDAQ:ALRM) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cadre	7.23%	13.50%	5.86%
Alarm.com	13.11%	14.79%	5.67%

Earnings & Valuation

This table compares Cadre 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
Cadre	$610.31 million	2.22	$44.14 million	$1.07	29.64
Alarm.com	$1.01 billion	2.21	$132.57 million	$2.46	18.29

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

Insider and Institutional Ownership

44.0% of Cadre shares are held by institutional investors. Comparatively, 91.7% of Alarm.com shares are held by institutional investors. 31.5% of Cadre shares are held by insiders. Comparatively, 5.6% of Alarm.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Cadre and Alarm.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadre	1	1	4	1	2.71
Alarm.com	1	3	0	2	2.50

Cadre currently has a consensus target price of $43.00, suggesting a potential upside of 35.60%. Alarm.com has a consensus target price of $57.00, suggesting a potential upside of 26.67%. Given Cadre’s stronger consensus rating and higher possible upside, research analysts clearly believe Cadre is more favorable than Alarm.com.

Risk and Volatility

Cadre has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

Cadre beats Alarm.com on 8 of the 15 factors compared between the two stocks.

About Cadre

Cadre Holdings, Inc. manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, the Department of Energy, Los Alamos National Laboratories, Waste Isolation Plant, and various foreign government agencies. Cadre Holdings, Inc. was founded in 1964 and is headquartered in Jacksonville, Florida.

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.