MMTec (NASDAQ:MTC) and Alarum Technologies (NASDAQ:ALAR) Critical Review

MMTec (NASDAQ:MTC) and Alarum Technologies (NASDAQ:ALAR) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

0.3% of MMTec shares are held by institutional investors. Comparatively, 3.2% of Alarum Technologies shares are held by institutional investors. 12.8% of MMTec shares are held by company insiders. Comparatively, 2.7% of Alarum Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares MMTec and Alarum Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MMTec	$810,000.00	90.96	-$56.08 million	N/A	N/A
Alarum Technologies	$40.76 million	1.51	$960,000.00	$0.16	52.56

Alarum Technologies has higher revenue and earnings than MMTec.

Profitability

This table compares MMTec and Alarum Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MMTec	N/A	N/A	N/A
Alarum Technologies	2.53%	17.11%	12.65%

Analyst Ratings

This is a breakdown of current recommendations for MMTec and Alarum Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MMTec	1	0	0	0	1.00
Alarum Technologies	1	0	1	0	2.00

Alarum Technologies has a consensus price target of $14.00, suggesting a potential upside of 66.47%. Given Alarum Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Alarum Technologies is more favorable than MMTec.

Volatility and Risk

MMTec has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500. Comparatively, Alarum Technologies has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Summary

Alarum Technologies beats MMTec on 10 of the 12 factors compared between the two stocks.

About MMTec

MMTec, Inc., together with its subsidiaries, develops and deploys platforms that enable financial institutions to engage in securities market transactions and settlements worldwide. The company operates in two segments, Gujia and MM Global. It offers Internet-based securities solutions comprising Securities Dealers Trading System, which supports securities registration and clearing, account management, risk management, trading and execution, and third party access middleware; Private Fund Investment Management System that supports multi-account management, fund valuation, risk management, quantitative trading access, liquidation, and requisition management; and Mobile Transaction Individual Client System and PC Client System for Apple IOS, Android, PC, and Web applications. The company enables its customers to white label its trading interface, as well as select modular functionalities. It serves hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms. MMTec, Inc. was incorporated in 2018 and is headquartered in Sheung Wan, Hong Kong.

About Alarum Technologies

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.