Head to Head Analysis: Alarm.com (NASDAQ:ALRM) & DoubleVerify (NYSE:DV)

DoubleVerify (NYSE:DV) and Alarm.com (NASDAQ:ALRM) are both mid-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Risk & Volatility

DoubleVerify has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DoubleVerify and Alarm.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	0	14	2	0	2.12
Alarm.com	1	2	0	2	2.60

DoubleVerify presently has a consensus price target of $13.52, indicating a potential upside of 1.02%. Alarm.com has a consensus price target of $55.00, indicating a potential upside of 3.09%. Given Alarm.com’s stronger consensus rating and higher probable upside, analysts plainly believe Alarm.com is more favorable than DoubleVerify.

Valuation & Earnings

This table compares DoubleVerify and Alarm.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleVerify	$748.29 million	2.77	$50.65 million	$0.36	37.18
Alarm.com	$1.01 billion	2.61	$132.57 million	$2.26	23.61

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	7.66%	8.77%	7.34%
Alarm.com	11.11%	15.65%	7.04%

Insider & Institutional Ownership

97.3% of DoubleVerify shares are owned by institutional investors. Comparatively, 91.7% of Alarm.com shares are owned by institutional investors. 4.0% of DoubleVerify shares are owned by company insiders. Comparatively, 4.8% of Alarm.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Alarm.com beats DoubleVerify on 9 of the 15 factors compared between the two stocks.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

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.