Adeia Inc. (ADEA) vs Alarm.com Holdings, Inc. (ALRM)

Adeia Inc. and Alarm.com Holdings, Inc. are both Software Application companies. Adeia Inc. and Alarm.com Holdings, Inc. are of similar size ($2.8B and $2.6B). Alarm.com Holdings, Inc. trades at the lower P/E: 22.4× against 22.5×. Adeia Inc. grew revenue faster over the last twelve months: 24.4% against 8.72%. Adeia Inc. has the higher net margin (26.1% vs 11.1%) and the higher return on invested capital (16.9% vs 9.71%). Across the 22 metrics below, Alarm.com Holdings, Inc. leads on 12 and Adeia Inc. on 10.

Valuation

Metric ADEA ALRM Software Application median
P/E 22.55 22.43 24.79
P/S 5.96 2.48 2.67
P/B 5.89 3.05 3.01
Price to free cash flow 16.33 14.69 16.59
EV/EBITDA 11.68 16.54 14.40
EV/Sales 6.49 2.96 2.62
Earnings yield 4.43% 4.46% 0.00%
Free cash flow yield 6.12% 6.81% 1.91%

Profitability

Metric ADEA ALRM Software Application median
Gross margin 100.00% 65.81% 67.03%
Operating margin 41.62% 12.83% 0.00%
Net margin 26.05% 11.11% 0.00%
Free cash flow margin 36.52% 17.59% 4.32%
Return on equity 27.88% 14.19% 0.00%
Return on assets 11.70% 6.28% 0.00%
Return on invested capital 16.87% 9.71% 0.00%

Growth

Metric ADEA ALRM Software Application median
Revenue growth (TTM) 24.35% 8.72% 12.40%
EPS growth (last fiscal year) 73.68% 7.42% —
Revenue growth, 5-year CAGR 2.54% 10.35% 13.72%
Net income growth, 5-year CAGR 0.00% 11.23% 0.00%

Health

Metric ADEA ALRM Software Application median
Debt to equity 0.81 0.57 0.02
Current ratio 3.25 4.96 1.55
Net debt to EBITDA 1.19 0.16 0.06

Dividend

Metric ADEA ALRM Software Application median
Dividend yield 1.54% — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric ADEA ALRM Software Application median
Market cap 2.76b 2.62b 396.11m

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