Life360 (NASDAQ:LIF – Get Free Report) and Alarm.com (NASDAQ:ALRM – Get Free Report) are both mid-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Life360 and Alarm.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Life360 | 6.46% | 7.95% | 4.87% |
| Alarm.com | 12.92% | 14.26% | 5.32% |
Insider & Institutional Ownership
20.0% of Life360 shares are held by institutional investors. Comparatively, 91.7% of Alarm.com shares are held by institutional investors. 5.6% of Alarm.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Life360 | $371.48 million | 13.56 | -$4.55 million | $0.34 | 188.97 |
| Alarm.com | $939.83 million | 2.75 | $124.12 million | $2.36 | 21.97 |
Alarm.com has higher revenue and earnings than Life360. Alarm.com is trading at a lower price-to-earnings ratio than Life360, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Life360 and Alarm.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Life360 | 0 | 3 | 6 | 1 | 2.80 |
| Alarm.com | 0 | 3 | 0 | 2 | 2.80 |
Life360 presently has a consensus target price of $93.63, indicating a potential upside of 45.72%. Alarm.com has a consensus target price of $64.67, indicating a potential upside of 24.72%. Given Life360’s higher probable upside, analysts clearly believe Life360 is more favorable than Alarm.com.
Risk & Volatility
Life360 has a beta of 3.6, suggesting that its stock price is 260% more volatile than the S&P 500. Comparatively, Alarm.com has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Summary
Alarm.com beats Life360 on 9 of the 14 factors compared between the two stocks.
About Life360
Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.
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.
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