Alarm.com (NASDAQ:ALRM) and Gaxos.ai (NASDAQ:GXAI) Critical Analysis

Gaxos.ai (NASDAQ:GXAI) and Alarm.com (NASDAQ:ALRM) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaxos.ai	0	0	0	0	0.00
Alarm.com	1	2	2	1	2.50

Alarm.com has a consensus price target of $64.33, indicating a potential upside of 11.23%. Given Alarm.com’s stronger consensus rating and higher probable upside, analysts plainly believe Alarm.com is more favorable than Gaxos.ai.

Insider & Institutional Ownership

42.6% of Gaxos.ai shares are held by institutional investors. Comparatively, 91.7% of Alarm.com shares are held by institutional investors. 12.0% of Gaxos.ai shares are held by insiders. Comparatively, 5.8% of Alarm.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Gaxos.ai has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Alarm.com has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gaxos.ai 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
Gaxos.ai	$27,740.00	372.33	-$3.95 million	N/A	N/A
Alarm.com	$955.37 million	3.01	$124.12 million	$2.37	24.41

Alarm.com has higher revenue and earnings than Gaxos.ai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gaxos.ai	N/A	-66.69%	-61.88%
Alarm.com	13.21%	13.55%	5.14%

Summary

Alarm.com beats Gaxos.ai on 11 of the 13 factors compared between the two stocks.

About Gaxos.ai

Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.

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.