Contrasting Isign Solutions (OTCMKTS:ISGN) & AlarmCom (OTCMKTS:ALRM)

AlarmCom (NASDAQ:ALRM) and Isign Solutions (OTCMKTS:ISGN) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

98.7% of AlarmCom shares are owned by institutional investors. 26.0% of AlarmCom shares are owned by insiders. Comparatively, 40.4% of Isign Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares AlarmCom and Isign Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AlarmCom 5.05% -98.00% 12.17%
Isign Solutions -155.30% N/A -591.92%

Analyst Recommendations

This is a breakdown of recent ratings for AlarmCom and Isign Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AlarmCom 0 3 6 0 2.67
Isign Solutions 0 0 0 0 N/A

AlarmCom currently has a consensus target price of $69.22, indicating a potential upside of 46.32%. Given AlarmCom’s higher probable upside, equities analysts plainly believe AlarmCom is more favorable than Isign Solutions.

Valuation and Earnings

This table compares AlarmCom and Isign Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AlarmCom $420.49 million 5.46 $21.52 million $1.31 36.11
Isign Solutions $1.01 million 2.42 -$1.94 million N/A N/A

AlarmCom has higher revenue and earnings than Isign Solutions.

Volatility and Risk

AlarmCom has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Isign Solutions has a beta of -0.85, meaning that its stock price is 185% less volatile than the S&P 500.

Summary

AlarmCom beats Isign Solutions on 9 of the 11 factors compared between the two stocks.

AlarmCom Company Profile

Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, thermostats, garage doors, and video cameras; and high definition video monitoring solutions, such as live streaming, smart clip capture, secure cloud storage, video alerts, continuous HD recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions, including scenes button, which adjust multiple devices; smart thermostat schedules; responsive savings; precision comfort; energy usage and environmental monitoring; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, access control, operational insights, early problem identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; installation and support tools; business management services; and sales, marketing, and training services, as well as wellness solutions. The company serves residential and business subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is headquartered in Tysons, Virginia.

Isign Solutions Company Profile

iSign Solutions Inc., together with its subsidiaries, supplies digital transaction management software for the financial services and insurance industries. It offers enterprise-class SignatureOne and iSign suite of electronic signature solutions that enable businesses to implement paperless and electronic signature-driven business processes. The company's products include SignatureOne Ceremony Server to facilitate end-to-end management of multi-party approvals for PDF and XHTML documents; and iSign Console that allows users to upload documents for signature, select signers, and signature methods, as well as manages and enforces document workflow for routing, reviewing, signing, and notifications. Its products also comprise iSign Enterprise that incorporates the features and function of the ceremony server and the console; and iSign Family, including iSign Mobile for signing on iOS and Android mobile devices, iSign Forms for integrated use of templates and forms, and iSign Live for simultaneous browsing signature ceremonies. In addition, the company offers Sign-it, a family of desktop software products that enable the real-time capture of electronic and digital signatures, as well as their verification and binding within a set of applications; and iSign Toolkits, a suite of application development tools for electronic signature capture, encryption, and verification in custom applications and Web-based processes. It serves financial service industry end-users, resellers, and channel partners serving the financial service industry primarily in North America, the ASEAN region, and Europe. The company was formerly known as Communication Intelligence Corporation and changed its name to iSign Solutions Inc. in December 2015. iSign Solutions Inc. was founded in 1981 and is headquartered in San Jose, California.

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