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ALRM vs NVDA

ALRM
Alarm.com Holdings, Inc.
NEUTRAL
Price
$46.59
Market Cap
$2.32B
Sector
Technology
AI Confidence
78%
NVDA
NVIDIA Corporation
NEUTRAL
Price
$174.40
Market Cap
$4.24T
Sector
Technology
AI Confidence
40%

Valuation

P/E Ratio
ALRM
18.94
NVDA
35.59
Forward P/E
ALRM
15.49
NVDA
15.69
P/B Ratio
ALRM
2.73
NVDA
26.95
P/S Ratio
ALRM
2.3
NVDA
19.63
EV/EBITDA
ALRM
15.53
NVDA
31.43

Profitability

Gross Margin
ALRM
66.15%
NVDA
71.07%
Operating Margin
ALRM
13.63%
NVDA
65.02%
Profit Margin
ALRM
13.11%
NVDA
55.6%
ROE
ALRM
15.84%
NVDA
101.48%
ROA
ALRM
4.12%
NVDA
51.19%

Growth

Revenue Growth
ALRM
8.0%
NVDA
73.2%
Earnings Growth
ALRM
17.9%
NVDA
95.6%

Financial Health

Debt/Equity
ALRM
1.2
NVDA
0.07
Current Ratio
ALRM
1.92
NVDA
3.9
Quick Ratio
ALRM
1.66
NVDA
3.14

Dividends

Dividend Yield
ALRM
--
NVDA
0.02%
Payout Ratio
ALRM
0.0%
NVDA
0.82%

AI Verdict

ALRM NEUTRAL

ALRM's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential instability despite moderate profitability and growth. The absence of an Altman Z-Score raises concern about default risk, particularly given a high debt/equity ratio of 1.20. While the company exhibits strong earnings growth (17.9% YoY) and consistent earnings beats (average surprise of 18.19% over last 4 quarters), its valuation at 18.94x P/E is elevated relative to peers and the broader sector. The Graham Number ($30.76) and intrinsic value estimate ($72.57) suggest a significant premium to conservative fair value, driven by growth expectations. Insider selling activity over the past six months further tempers optimism.

Strengths
Consistent earnings beat history with an average surprise of 18.19% over the last four quarters
Strong gross margin of 66.15% and operating margin of 13.63% indicate pricing power and operational efficiency
Robust earnings growth of 17.90% YoY and 14.50% Q/Q, outpacing revenue growth
Risks
Piotroski F-Score of 4/9 indicates weak financial health and potential distress signals
Debt/Equity ratio of 1.20 is elevated, especially for a software company with high growth expectations
Insider selling of $2.87M in the last 6 months signals potential lack of confidence from leadership
NVDA NEUTRAL

NVDA shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Key strengths include strong valuation and growth metrics. Price trades at a 20.7% premium to fair value estimate ($144.55), limiting near-term upside from a valuation perspective.

Strengths
Strong profitability (55.6% margin)
Strong financial trend (Piotroski F-Score: 7/9)
Strong revenue growth of 73.2%
Risks
High valuation with P/E of 35.6
Premium vs Graham Number ($26.71)
Price trades at a 20.7% premium to fair value estimate ($144.55), limiting near-term upside from a valuation perspective.

Compare Another Pair

ALRM vs NVDA: Head-to-Head Comparison

This page compares Alarm.com Holdings, Inc. (ALRM) and NVIDIA Corporation (NVDA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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