ALRM vs NXRT

For growth investors, Alarm.

com Holdings, Inc. (ALRM) is the stronger pick with 7. 6% revenue growth year-over-year, versus -3. 2% for NexPoint Residential Trust, Inc. (NXRT). Alarm. com Holdings, Inc. (ALRM) offers the better valuation at 19. 1x trailing P/E (16. 9x forward), making it the more compelling value choice. Analysts rate Alarm. com Holdings, Inc. (ALRM) a "Buy" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, NexPoint Residential Trust, Inc.

(NXRT) delivered a total return of -23. 0%, compared to -44. 8% for Alarm. com Holdings, Inc. (ALRM). Over 10 years, the gap is even starker: NXRT returned +211. 1% versus ALRM's +114. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), NexPoint Residential Trust, Inc.

(NXRT) is the lower-risk stock at 0. 62β versus Alarm. com Holdings, Inc. 's 1. 17β — meaning ALRM is approximately 88% more volatile than NXRT relative to the S&P 500. On balance sheet safety, Alarm. com Holdings, Inc. (ALRM) carries a lower debt/equity ratio of 127% versus 5% for NexPoint Residential Trust, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Alarm.

com Holdings, Inc. (ALRM) is pulling ahead at 7. 6% versus -3. 2% for NexPoint Residential Trust, Inc. (NXRT). On earnings-per-share growth, the picture is similar: Alarm. com Holdings, Inc. grew EPS 7. 4% year-over-year, compared to -30. 8% for NexPoint Residential Trust, Inc.. Over a 3-year CAGR, ALRM leads at 6. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Alarm.

com Holdings, Inc. (ALRM) is the more profitable company, earning 13. 1% net margin versus -12. 7% for NexPoint Residential Trust, Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALRM leads at 13. 4% versus 11. 1% for NXRT. At the gross margin level — before operating expenses — NXRT leads at 84. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for ALRM: 6.

4% to $50. 00.

In this comparison, NXRT (7.

1% yield) pays a dividend. ALRM does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, NexPoint Residential Trust, Inc.

(NXRT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 62), 7. 1% yield, +211. 1% 10Y return). Both have compounded well over 10 years (NXRT: +211. 1%, ALRM: +114. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (ALRM (Technology) and NXRT (Real Estate)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ALRM is a small-cap quality compounder stock; NXRT is a small-cap income-oriented stock. NXRT pays a dividend while ALRM does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.