Contrasting Oracle (NYSE:ORCL) & AlarmCom (NYSE:ALRM)
Oracle (NYSE:ORCL) and AlarmCom (NASDAQ:ALRM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Valuation and Earnings
This table compares Oracle and AlarmCom’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oracle||$39.51 billion||3.67||$11.08 billion||$3.16||14.54|
|AlarmCom||$502.36 million||3.87||$53.33 million||$1.35||29.50|
Volatility and Risk
Oracle has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, AlarmCom has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Oracle and AlarmCom, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oracle presently has a consensus target price of $52.95, indicating a potential upside of 15.26%. AlarmCom has a consensus target price of $68.89, indicating a potential upside of 72.96%. Given AlarmCom’s stronger consensus rating and higher possible upside, analysts clearly believe AlarmCom is more favorable than Oracle.
Insider & Institutional Ownership
51.9% of Oracle shares are owned by institutional investors. Comparatively, 99.9% of AlarmCom shares are owned by institutional investors. 36.6% of Oracle shares are owned by insiders. Comparatively, 26.0% of AlarmCom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Oracle and AlarmCom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Oracle beats AlarmCom on 8 of the 15 factors compared between the two stocks.
Oracle Company Profile
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. It offers human capital and talent management, enterprise resource planning, customer experience and relationship management, procurement, supply chain management, project portfolio management, business analytics and enterprise performance management, and industry-specific application software, as well as financial management and governance, and risk and compliance applications. The company also licenses its Oracle Database for storage, retrieval, and manipulation of data; and Oracle Fusion Middleware software to build, deploy, secure, access, extend, and integrate business applications, as well as automate business processes. In addition, it provides a range of development tools, identity management, and business analytics software solutions for mobile computing development to address the development needs of businesses; Java, a software development language; and big data solutions. Further, the company provides Oracle Engineered Systems, servers, storage, industry-specific hardware, and hardware support products, as well as operating systems, virtualization, management, and other hardware-related software. Additionally, it provides consulting services, including IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, application development and integration, security assessments, and ongoing software enhancements and upgrade services; and customer support and education services. The company serves businesses, government agencies, educational institutions, and resellers. Oracle Corporation was founded in 1977 and is headquartered in Redwood City, California.
AlarmCom Company Profile
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.
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