Reviewing Alarm.com (NASDAQ:ALRM) and Sprinklr (NYSE:CXM)

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

Volatility and Risk

Alarm.com has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Sprinklr has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarm.com	$1.01 billion	2.75	$132.57 million	$2.41	23.36
Sprinklr	$857.20 million	1.81	$22.91 million	$0.12	55.29

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

Institutional and Insider Ownership

91.7% of Alarm.com shares are held by institutional investors. Comparatively, 40.2% of Sprinklr shares are held by institutional investors. 4.8% of Alarm.com shares are held by insiders. Comparatively, 25.2% of Sprinklr shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alarm.com	12.36%	14.99%	6.24%
Sprinklr	3.29%	8.13%	4.03%

Analyst Recommendations

This is a breakdown of recent recommendations for Alarm.com and Sprinklr, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarm.com	1	3	0	0	1.75
Sprinklr	2	4	2	0	2.00

Alarm.com currently has a consensus price target of $47.50, indicating a potential downside of 15.62%. Sprinklr has a consensus price target of $7.79, indicating a potential upside of 17.34%. Given Sprinklr’s stronger consensus rating and higher probable upside, analysts plainly believe Sprinklr is more favorable than Alarm.com.

Summary

Alarm.com beats Sprinklr on 9 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 Sprinklr

Sprinklr, Inc. provides enterprise cloud software products worldwide. The company operates Unified Customer Experience Management platform, a software that enables customer-facing teams to collaborate across internal silos, communicate across digital channels, and leverage a complete suite of capabilities to deliver customer experiences. Its products include Sprinklr Service, a suite of artificial intelligence (AI) powered products and solutions that unifies customer service across voice, digital, and social channels; Sprinklr Social, a suite of AI-powered products and solutions that unifies social media publishing and engagement across various channels; Sprinklr Insights, a suite of AI-powered products and solutions that unifies consumer, customer, competitive and industry data from a high volume of third-party, second-party and first-party sources; and Sprinklr Marketing, a suite of AI-powered products and solutions that unifies content production and content lifecycle management with paid campaign orchestration across various channels. The company also provides professional, managed, training, and consultancy services. Sprinklr, Inc. was founded in 2009 and is headquartered in New York, New York.