Alarm.com Holdings, Inc. (ALRM) vs SoundHound AI, Inc. (SOUN)

Alarm.com Holdings, Inc. and SoundHound AI, Inc. are both Software Application companies. Alarm.com Holdings, Inc. and SoundHound AI, Inc. are of similar size ($2.8B and $2.6B). SoundHound AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Alarm.com Holdings, Inc. trades at 22.4×. SoundHound AI, Inc. grew revenue faster over the last twelve months: 54.6% against 8.72%. Alarm.com Holdings, Inc. has the higher net margin (11.1% vs −67.1%) and the higher return on invested capital (9.71% vs −30.3%). Across the 18 metrics below, Alarm.com Holdings, Inc. leads on 14 and SoundHound AI, Inc. on 4.

Valuation

Metric ALRM SOUN Software Application median
P/E 22.43 n/m 24.79
P/S 2.48 12.82 2.67
P/B 3.05 5.31 3.01
Price to free cash flow 14.69 n/m 16.59
EV/EBITDA 16.54 n/m 14.40
EV/Sales 2.96 12.03 2.62
Earnings yield 4.46% (5.45%) 0.00%
Free cash flow yield 6.81% (4.81%) 1.91%

Profitability

Metric ALRM SOUN Software Application median
Gross margin 65.81% 42.29% 67.03%
Operating margin 12.83% (68.55%) 0.00%
Net margin 11.11% (67.10%) 0.00%
Free cash flow margin 17.59% (61.66%) 4.32%
Return on equity 14.19% (32.08%) 0.00%
Return on assets 6.28% (21.86%) 0.00%
Return on invested capital 9.71% (30.26%) 0.00%

Growth

Metric ALRM SOUN Software Application median
Revenue growth (TTM) 8.72% 54.58% 12.40%
EPS growth (last fiscal year) 7.42% 96.71% —
Revenue growth, 5-year CAGR 10.35% — 13.72%
Net income growth, 5-year CAGR 11.23% 0.00% 0.00%

Health

Metric ALRM SOUN Software Application median
Debt to equity 0.57 0.00 0.02
Current ratio 4.96 3.91 1.55
Net debt to EBITDA 0.16 (16.15) 0.06

Dividend

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

Size

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

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