Alarm.com Holdings Inc (ALRM)vsShopify Inc (SHOP)
ALRM
Alarm.com Holdings Inc
$47.60
+1.28%
TECHNOLOGY · Cap: $2.32B
SHOP
Shopify Inc
$110.41
-1.19%
TECHNOLOGY · Cap: $136.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1123% more annual revenue ($12.37B vs $1.01B). ALRM leads profitability with a 13.1% profit margin vs 10.8%. ALRM appears more attractively valued with a PEG of 1.41. ALRM earns a higher WallStSmart Score of 63/100 (C+).
ALRM
Buy63
out of 100
Grade: C+
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.5%
Fair Value
$95.84
Current Price
$47.60
$48.24 discount
Margin of Safety
+26.1%
Fair Value
$158.22
Current Price
$110.41
$47.81 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Trading at 10.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ALRM
The strongest argument for ALRM centers on Price/Book. PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : ALRM
No major red flags identified for ALRM, but monitor valuation.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.
Key Dynamics to Monitor
ALRM profiles as a value stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.64 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (469M), providing more financial flexibility.
Bottom Line
ALRM scores higher overall (63/100 vs 50/100). SHOP offers better value entry with a 26.1% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alarm.com Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Alarm.com Holdings, Inc. offers cloud-based solutions for smart residential and commercial properties in the United States and internationally. The company is headquartered in Tysons, Virginia.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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