Alarm.com (NASDAQ:ALRM – Get Free Report) and LivePerson (NASDAQ:LPSN – Get Free Report) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Alarm.com and LivePerson, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarm.com | 1 | 3 | 2 | 0 | 2.17 |
| LivePerson | 1 | 7 | 0 | 0 | 1.88 |
Alarm.com currently has a consensus price target of $64.40, indicating a potential upside of 5.18%. LivePerson has a consensus price target of $1.25, indicating a potential downside of 13.49%. Given Alarm.com’s stronger consensus rating and higher possible upside, equities analysts plainly believe Alarm.com is more favorable than LivePerson.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarm.com | $881.68 million | 3.43 | $81.04 million | $2.31 | 26.51 |
| LivePerson | $401.98 million | 0.32 | -$100.43 million | ($1.53) | -0.94 |
Alarm.com has higher revenue and earnings than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than Alarm.com, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Alarm.com has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, LivePerson has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
Profitability
This table compares Alarm.com and LivePerson’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alarm.com | 13.54% | 13.78% | 5.62% |
| LivePerson | -18.72% | -111.48% | -6.78% |
Institutional & Insider Ownership
91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 79.8% of LivePerson shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by insiders. Comparatively, 9.0% of LivePerson shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Alarm.com beats LivePerson on 12 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 LivePerson
LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.
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