ALRM vs. BSY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALRM and BSY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BSY’s market capitalization of 16.15 billion USD is significantly greater than ALRM’s 2.87 billion USD, highlighting its more substantial market valuation.
With betas of 1.00 for ALRM and 1.07 for BSY, both stocks show similar sensitivity to overall market movements.
| Symbol | ALRM | BSY |
|---|---|---|
| Company Name | Alarm.com Holdings, Inc. | Bentley Systems, Incorporated |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Application | Software - Application |
| CEO | Stephen S. Trundle | Nicholas H. Cumins |
| Price | 57.69 USD | 55.345 USD |
| Market Cap | 2.87 billion USD | 16.15 billion USD |
| Beta | 1.00 | 1.07 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 26, 2015 | September 23, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALRM and BSY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALRM
18.21%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
In the upper quartile for the Software - Application industry, ALRM’s Return on Equity of 18.21% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
BSY
24.63%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
In the upper quartile for the Software - Application industry, BSY’s Return on Equity of 24.63% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ALRM
7.10%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
ALRM’s Return on Invested Capital of 7.10% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.
BSY
10.64%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
In the upper quartile for the Software - Application industry, BSY’s Return on Invested Capital of 10.64% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ALRM
13.45%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
ALRM’s Net Profit Margin of 13.45% is aligned with the median group of its peers in the Software - Application industry. This indicates its ability to convert revenue into profit is typical for the sector.
BSY
18.46%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 18.46% places BSY in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ALRM
12.51%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
ALRM’s Operating Profit Margin of 12.51% is around the midpoint for the Software - Application industry, indicating that its efficiency in managing core business operations is typical for the sector.
BSY
23.56%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 23.56% places BSY in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALRM | BSY |
|---|---|---|
| Return on Equity (TTM) | 18.21% | 24.63% |
| Return on Assets (TTM) | 6.18% | 7.52% |
| Return on Invested Capital (TTM) | 7.10% | 10.64% |
| Net Profit Margin (TTM) | 13.45% | 18.46% |
| Operating Profit Margin (TTM) | 12.51% | 23.56% |
| Gross Profit Margin (TTM) | 64.94% | 80.60% |
Financial Strength
Current Ratio
ALRM
2.14
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
ALRM’s Current Ratio of 2.14 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
BSY
0.49
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
BSY’s Current Ratio of 0.49 falls into the lower quartile for the Software - Application industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ALRM
1.40
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
ALRM’s leverage is in the upper quartile of the Software - Application industry, with a Debt-to-Equity Ratio of 1.40. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
BSY
1.17
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
BSY’s leverage is in the upper quartile of the Software - Application industry, with a Debt-to-Equity Ratio of 1.17. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
ALRM
7.99
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
ALRM’s Interest Coverage Ratio of 7.99 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
BSY
16.36
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
BSY’s Interest Coverage Ratio of 16.36 is in the upper quartile for the Software - Application industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALRM | BSY |
|---|---|---|
| Current Ratio (TTM) | 2.14 | 0.49 |
| Quick Ratio (TTM) | 2.01 | 0.49 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 1.17 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 0.38 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.67 | 2.99 |
| Interest Coverage Ratio (TTM) | 7.99 | 16.36 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALRM and BSY. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALRM
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALRM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
BSY
0.47%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.47%, BSY offers a more attractive income stream than most of its peers in the Software - Application industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ALRM
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALRM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
BSY
29.49%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BSY’s Dividend Payout Ratio of 29.49% is in the upper quartile for the Software - Application industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALRM | BSY |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.47% |
| Dividend Payout Ratio (TTM) | 0.00% | 29.49% |
Valuation
Price-to-Earnings Ratio
ALRM
22.30
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
In the lower quartile for the Software - Application industry, ALRM’s P/E Ratio of 22.30 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
BSY
68.17
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
BSY’s P/E Ratio of 68.17 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALRM
-0.22
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
ALRM has a negative Forward PEG Ratio of -0.22. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
BSY
4.96
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
BSY’s Forward PEG Ratio of 4.96 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ALRM
3.00
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
ALRM’s P/S Ratio of 3.00 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
BSY
11.65
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
BSY’s P/S Ratio of 11.65 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ALRM
3.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
BSY
15.89
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
Valuation at a Glance
| Symbol | ALRM | BSY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.30 | 68.17 |
| Forward PEG Ratio (TTM) | -0.22 | 4.96 |
| Price-to-Sales Ratio (P/S, TTM) | 3.00 | 11.65 |
| Price-to-Book Ratio (P/B, TTM) | 3.77 | 15.89 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.22 | 37.03 |
| EV-to-EBITDA (TTM) | 14.87 | 43.24 |
| EV-to-Sales (TTM) | 2.88 | 12.52 |