Alarm.com Holdings Inc (ALRM)vsShopify Inc (SHOP)
ALRM
Alarm.com Holdings Inc
$65.03
-2.98%
TECHNOLOGY · Cap: $3.27B
SHOP
Shopify Inc
$148.91
+3.59%
TECHNOLOGY · Cap: $215.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1151% more annual revenue ($13.27B vs $1.06B). SHOP leads profitability with a 14.5% profit margin vs 11.1%. ALRM appears more attractively valued with a PEG of 1.41. SHOP earns a higher WallStSmart Score of 63/100 (C+).
ALRM
Buy54
out of 100
Grade: C-
SHOP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.2%
Fair Value
$68.47
Current Price
$65.03
$3.44 discount
Margin of Safety
+22.4%
Fair Value
$150.58
Current Price
$148.91
$1.67 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
Grey zone — moderate risk
Earnings declined 23.4%
Expensive relative to growth rate
Trading at 15.1x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ALRM
PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bull Case : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : ALRM
The primary concerns for ALRM are P/E Ratio, Altman Z-Score, EPS Growth.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x 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 2.63 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
SHOP generates stronger free cash flow (816M), providing more financial flexibility.
Bottom Line
SHOP scores higher overall (63/100 vs 54/100) and 33.7% revenue growth. ALRM offers better value entry with a 32.2% 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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