Financial Review: BILL (NYSE:BILL) & Alarum Technologies (NASDAQ:ALAR)

BILL (NYSE:BILL) and Alarum Technologies (NASDAQ:ALAR) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for BILL and Alarum Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BILL	1	9	11	0	2.48
Alarum Technologies	0	0	3	0	3.00

BILL presently has a consensus target price of $70.24, indicating a potential upside of 38.39%. Alarum Technologies has a consensus target price of $30.00, indicating a potential upside of 154.67%. Given Alarum Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Alarum Technologies is more favorable than BILL.

Profitability

This table compares BILL and Alarum Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BILL	-2.24%	1.13%	0.49%
Alarum Technologies	12.70%	54.68%	35.55%

Institutional and Insider Ownership

98.0% of BILL shares are held by institutional investors. Comparatively, 3.2% of Alarum Technologies shares are held by institutional investors. 3.8% of BILL shares are held by insiders. Comparatively, 2.7% of Alarum Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

BILL has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Alarum Technologies has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Earnings & Valuation

This table compares BILL and Alarum Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BILL	$1.29 billion	4.17	-$28.88 million	($0.79)	-64.24
Alarum Technologies	$31.12 million	2.58	-$5.53 million	($1.47)	-8.01

Alarum Technologies has lower revenue, but higher earnings than BILL. BILL is trading at a lower price-to-earnings ratio than Alarum Technologies, indicating that it is currently the more affordable of the two stocks.

About BILL

BILL Holdings, Inc. provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. In addition, the company's artificial intelligence enabled software provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.

About Alarum Technologies

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.