Critical Comparison: Alarum Technologies (NASDAQ:ALAR) versus Pintec Technology (NASDAQ:PT)

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

Institutional and Insider Ownership

6.6% of Pintec Technology shares are held by institutional investors. Comparatively, 3.2% of Alarum Technologies shares are held by institutional investors. 4.1% of Pintec Technology 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, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Pintec Technology has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Alarum Technologies has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pintec Technology	$35.55 million	0.49	-$2.12 million	N/A	N/A
Alarum Technologies	$40.76 million	1.73	$960,000.00	$0.16	60.19

Alarum Technologies has higher revenue and earnings than Pintec Technology.

Analyst Ratings

This is a summary of current ratings and price targets for Pintec Technology and Alarum Technologies, as provided by MarketBeat.

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

Alarum Technologies has a consensus target price of $14.00, suggesting a potential upside of 45.38%. Given Alarum Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Alarum Technologies is more favorable than Pintec Technology.

Summary

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

About Pintec Technology

Pintec Technology Holdings Limited, together with its subsidiaries, engages in the provision of technology-enabled financial and digital services to the ecosystem of MSMEs and SMEs in the People’s Republic of China. The company connects business partners and financial partners on its open platform and enables them to provide financial services to end users. It provides point-of-sale financing solutions to its business partners on their platforms or on its own platform under the Dumiao brand; and business installment loan solutions to its business partners on their platforms or on its own platform. The company also offers wealth management solutions, including a fund distribution solution that enables partners to offer and distribute mutual fund products to their customers, either under its Hongdian brand or as a white label solution; and a robo-advisory solution under the Polaris brand which enables its financial and business partners to provide robo-advisory services to their customers. In addition, it provides international installment loan solutions; Myfin, an insurance solution, that enables its partners to offer and distribute insurance products to its users; value added tools to business and financial partners for deploying its solutions, monitor and evaluate performance, and scale their business; digital marketing tools to target users, implement intelligent digital marketing activities, and increase marketing efficiencies and effectiveness; and real time monitoring tools that offer comprehensive and visualized performance monitoring interface. The company was founded in 2012 and is headquartered in Beijing, the People’s Republic of China.

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.