NSSC vs ALRM vs REZI vs DGLY vs AXON

For growth investors, Axon Enterprise, Inc.

(AXON) is the stronger pick with 33. 5% revenue growth year-over-year, versus -30. 4% for Digital Ally, Inc. (DGLY). 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 Napco Security Technologies, Inc. (NSSC) a "Buy" — based on 11 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 Axon Enterprise, Inc. at 282. 7x. On forward P/E, Resideo Technologies, Inc. is actually cheaper at 13. 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: Napco Security Technologies, Inc. wins at 0. 74x versus Alarm. com Holdings, Inc. 's 1. 69x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Axon Enterprise, Inc.

(AXON) delivered a total return of +216. 8%, compared to -100. 0% for Digital Ally, Inc. (DGLY). Over 10 years, the gap is even starker: AXON returned +22. 0% versus DGLY's -100. 0%. 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), Alarm.

com Holdings, Inc. (ALRM) is the lower-risk stock at 1. 17β versus Digital Ally, Inc. 's 3. 58β — meaning DGLY is approximately 205% more volatile than ALRM relative to the S&P 500. On balance sheet safety, Napco Security Technologies, Inc. (NSSC) carries a lower debt/equity ratio of 3% versus 127% for Alarm. com Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Axon Enterprise, Inc.

(AXON) is pulling ahead at 33. 5% versus -30. 4% for Digital Ally, Inc. (DGLY). On earnings-per-share growth, the picture is similar: Digital Ally, Inc. grew EPS 39. 5% year-over-year, compared to -718. 0% for Resideo Technologies, Inc.. Over a 3-year CAGR, AXON leads at 32. 7% 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.

Napco Security Technologies, Inc.

(NSSC) is the more profitable company, earning 23. 9% net margin versus -101. 0% for Digital Ally, Inc. — meaning it keeps 23. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NSSC leads at 25. 5% versus -77. 4% for DGLY. 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, Napco Security Technologies, Inc. (NSSC) is the more undervalued stock at a PEG of 0. 74x versus Alarm. com Holdings, Inc. 's 1. 69x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Resideo Technologies, Inc. (REZI) trades at 13. 1x forward P/E versus 55. 0x for Axon Enterprise, Inc. — 41. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AXON: 70. 2% to $726. 71.

In this comparison, NSSC (0.

9% yield), REZI (0. 6% yield) pay a dividend. ALRM, DGLY, AXON do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Napco Security Technologies, Inc.

(NSSC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 25), 0. 9% yield, +1366% 10Y return). Digital Ally, Inc. (DGLY) carries a higher beta of 3. 58 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NSSC: +1366%, DGLY: -100. 0%), 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 (NSSC (Industrials) and ALRM (Technology) and REZI (Industrials) and DGLY (Industrials) and AXON (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: NSSC is a small-cap quality compounder stock; ALRM is a small-cap quality compounder stock; REZI is a small-cap quality compounder stock; DGLY is a small-cap quality compounder stock; AXON is a mid-cap high-growth stock. NSSC, REZI pay a dividend while ALRM, DGLY, AXON do 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.