Alarum Technologies (NASDAQ:ALAR – Get Free Report) and Cardlytics (NASDAQ:CDLX – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Profitability
This table compares Alarum Technologies and Cardlytics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alarum Technologies | 3.28% | 17.77% | 13.68% |
| Cardlytics | -44.12% | -235.70% | -31.31% |
Valuation & Earnings
This table compares Alarum Technologies and Cardlytics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alarum Technologies | $31.82 million | 2.18 | $5.78 million | $0.17 | 56.82 |
| Cardlytics | $278.30 million | 0.26 | -$189.30 million | ($2.11) | -0.64 |
Alarum Technologies has higher earnings, but lower revenue than Cardlytics. Cardlytics is trading at a lower price-to-earnings ratio than Alarum Technologies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Alarum Technologies has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Cardlytics has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Institutional and Insider Ownership
3.2% of Alarum Technologies shares are held by institutional investors. Comparatively, 68.1% of Cardlytics shares are held by institutional investors. 2.7% of Alarum Technologies shares are held by company insiders. Comparatively, 4.4% of Cardlytics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and target prices for Alarum Technologies and Cardlytics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alarum Technologies | 1 | 0 | 1 | 0 | 2.00 |
| Cardlytics | 1 | 3 | 0 | 0 | 1.75 |
Alarum Technologies currently has a consensus target price of $22.00, suggesting a potential upside of 127.74%. Cardlytics has a consensus target price of $2.25, suggesting a potential upside of 67.29%. Given Alarum Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Alarum Technologies is more favorable than Cardlytics.
Summary
Alarum Technologies beats Cardlytics on 11 of the 14 factors compared between the two stocks.
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.
About Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
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