Alarm.com (NASDAQ:ALRM – Get Free Report) and Bridgeline Digital (NASDAQ:BLIN – Get Free Report) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Alarm.com and Bridgeline Digital’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% |
| Bridgeline Digital | -62.72% | -84.86% | -55.19% |
Insider & Institutional Ownership
91.7% of Alarm.com shares are owned by institutional investors. Comparatively, 15.1% of Bridgeline Digital shares are owned by institutional investors. 5.6% of Alarm.com shares are owned by insiders. Comparatively, 20.3% of Bridgeline Digital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Valuation & Earnings
This table compares Alarm.com and Bridgeline Digital”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarm.com | $923.82 million | 3.20 | $81.04 million | $2.31 | 25.90 |
| Bridgeline Digital | $15.36 million | 1.09 | -$9.44 million | ($0.19) | -8.42 |
Alarm.com has higher revenue and earnings than Bridgeline Digital. Bridgeline Digital is trading at a lower price-to-earnings ratio than Alarm.com, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Alarm.com and Bridgeline Digital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarm.com | 1 | 3 | 2 | 0 | 2.17 |
| Bridgeline Digital | 0 | 1 | 0 | 0 | 2.00 |
Alarm.com presently has a consensus target price of $64.40, suggesting a potential upside of 7.64%. Given Alarm.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe Alarm.com is more favorable than Bridgeline Digital.
Summary
Alarm.com beats Bridgeline Digital 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 Bridgeline Digital
Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO. It also provides Bridgeline TruPresence, a web content management and eCommerce platform to support the needs of multi-unit organizations and franchises; Bridgeline Unbound, a technology suite that empower marketers to easily manage their digital experiences and create personalized customer journeys; and OrchestraCMS, a digital experience platform that enables development of custom solutions, third-party integrations, and delivery of digital transformation initiatives on the Salesforce platform. In addition, the company offers digital engagement services comprising digital strategy, web design and web development, usability engineering, information architecture, and SEO, as well as hosting services. It serves vertical markets, such as industrial distributors and wholesalers, franchises and enterprises, manufacturers, eCommerce retailers, health services and life sciences, technology, credit unions and banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was incorporated in 2000 and is based in Woburn, Massachusetts.
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