ALRM vs SSNC

For growth investors, Alarm.

com Holdings, Inc. (ALRM) is the stronger pick with 7. 6% revenue growth year-over-year, versus 6. 6% for SS&C Technologies Holdings, Inc. (SSNC). 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.

On trailing P/E, Alarm.

com Holdings, Inc. (ALRM) is the cheapest at 19. 1x versus SS&C Technologies Holdings, Inc. at 22. 2x. On forward P/E, SS&C Technologies Holdings, Inc. is actually cheaper at 10. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: SS&C Technologies Holdings, Inc. wins at 1. 68x versus Alarm. com Holdings, Inc. 's 1. 69x — a reasonable growth-adjusted valuation.

Over the past 5 years, SS&C Technologies Holdings, Inc.

(SSNC) delivered a total return of +1. 7%, compared to -44. 8% for Alarm. com Holdings, Inc. (ALRM). Over 10 years, the gap is even starker: SSNC returned +164. 9% 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), SS&C Technologies Holdings, Inc.

(SSNC) is the lower-risk stock at 0. 79β versus Alarm. com Holdings, Inc. 's 1. 17β — meaning ALRM is approximately 48% more volatile than SSNC relative to the S&P 500. On balance sheet safety, SS&C Technologies Holdings, Inc. (SSNC) carries a lower debt/equity ratio of 110% versus 127% for Alarm. com Holdings, 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 6. 6% for SS&C Technologies Holdings, Inc. (SSNC). On earnings-per-share growth, the picture is similar: Alarm. com Holdings, Inc. grew EPS 7. 4% year-over-year, compared to 5. 0% for SS&C Technologies Holdings, 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 SS&C Technologies Holdings, Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SSNC leads at 22. 9% versus 13. 4% for ALRM. At the gross margin level — before operating expenses — ALRM leads at 63. 1%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, SS&C Technologies Holdings, Inc. (SSNC) is the more undervalued stock at a PEG of 1. 68x versus Alarm. com Holdings, Inc. 's 1. 69x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, SS&C Technologies Holdings, Inc. (SSNC) trades at 10. 1x forward P/E versus 16. 9x for Alarm. com Holdings, Inc. — 6. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SSNC: 34. 4% to $94. 20.

In this comparison, SSNC (1.

4% yield) pays a dividend. ALRM does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, SS&C Technologies Holdings, Inc.

(SSNC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 79), 1. 4% yield, +164. 9% 10Y return). Both have compounded well over 10 years (SSNC: +164. 9%, 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

SSNC 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.