Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Alarm.com Holdings, Inc., Arteris or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Alarm.com Holdings, Inc., Arteris and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Alarm.com Holdings, Inc., Arteris and Inc.

Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally. It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services. The company was founded in 2000 and is headquartered in Tysons, Virginia.

Arteris, Inc., together with its subsidiaries, provides semiconductor system intellectual property (IP) solutions in the United States, rest of the Americas, China, Korea, the rest of the Asia Pacific, Europe, and the Middle East. It manages on-chip communications and IP block deployments in System-on-Chip (SoC) semiconductors and systems of chiplets. The company offers Network-on-Chip (NoC) IP Products, such as FlexGen, FlexNoC, and FlexWay, a non-coherent NoC IP; Ncore, a cache-coherent NoC IP; and CodaCache, a last-level cache. It also provides hardware security verification software products, such as Cycuity Radix-S to detect and remediate security issues in IP blocks and subsystems of an SoC; Cycuity Radix-M for hardware security verification emulation for system-level SoC and firmware; and Cycuity Radix-ST, a static security analyzer that identifies potential design weaknesses early in the development lifecycle, as well as SoC integration automation software solutions products, including Magillem Connectivity and Registers, and CSRCompiler. In addition, the company offers professional services, such as training, design assistance, and consulting; licensing services for software and intellectual properties; IP support and maintenance; and on-site support services. It serves the automotive, communications, enterprise computing, consumer electronics, and industrial markets. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.

Latest Software and Alarm.com Holdings, Inc., Arteris, Inc. Stock News

As of July 31, 2026, Alarm.com Holdings, Inc. had a $2.7 billion market capitalization, compared to the Software median of $977.4 million. Alarm.com Holdings, Inc.’s stock is up 7.3% in 2026, up 5.7% in the previous five trading days and down 1.95% in the past year.

Currently, Alarm.com Holdings, Inc.’s price-earnings ratio is 22.7. Alarm.com Holdings, Inc.’s trailing 12-month revenue is $1.0 billion with a 12.4% net profit margin. Year-over-year quarterly sales growth most recently was 11.1%. Analysts expect adjusted earnings to reach $2.775 per share for the current fiscal year. Alarm.com Holdings, Inc. does not currently pay a dividend.

As of July 31, 2026, Arteris, Inc. had a $1.4 billion market cap, putting it in the 49th percentile of all stocks. Arteris, Inc.’s stock is up 92.8% in 2026, down 1.3% in the previous five trading days and up 185.93% in the past year.

Currently, Arteris, Inc. does not have a price-earnings ratio. Arteris, Inc.’s trailing 12-month revenue is $77.0 million with a -44.9% net profit margin. Year-over-year quarterly sales growth most recently was 38.8%. Analysts expect adjusted earnings to reach $-0.102 per share for the current fiscal year. Arteris, Inc. does not currently pay a dividend.

How We Compare Alarm.com Holdings, Inc., Arteris and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Alarm.com Holdings, Inc., Arteris and Inc.’s stock grades to see how they measure up against one another.

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Alarm.com Holdings, Inc., Arteris and Inc. Stock Value Grades

Company	Ticker	Value
Alarm.com Holdings, Inc.	ALRM	D
Arteris, Inc.	AIP	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Alarm.com Holdings, Inc. has a Value Score of 39, which is Expensive. Arteris, Inc. has a Value Score of 2, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Alarm.com Holdings, Inc., Arteris or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Alarm.com Holdings, Inc., Arteris or Inc. is the better investment when it comes to value.

Alarm.com Holdings, Inc., Arteris and Inc. Growth Grades

Company	Ticker	Growth
Alarm.com Holdings, Inc.	ALRM	A
Arteris, Inc.	AIP	C

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Alarm.com Holdings, Inc. has a Growth Score of 100, which is Very Strong. Arteris, Inc. has a Growth Score of 47, which is Average.

The Growth Grade Winner: Alarm.com Holdings, Inc.

As you can clearly see from the Growth Grade breakdown above, Alarm.com Holdings, Inc. has a more attractive growth grade than Arteris, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Alarm.com Holdings, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Alarm.com Holdings, Inc., Arteris and Inc.’s Momentum Grades

Company	Ticker	Momentum
Alarm.com Holdings, Inc.	ALRM	C
Arteris, Inc.	AIP	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Alarm.com Holdings, Inc. has a Momentum Score of 52, which is Average. Arteris, Inc. has a Momentum Score of 94, which is Very Strong.

The Momentum Grade Winner: Arteris, Inc.

As you can clearly see from the Momentum Grade breakdown above, Arteris, Inc. is considered to have stronger momentum compared to Alarm.com Holdings, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Arteris, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Alarm.com Holdings, Inc., Arteris and Inc. Grades

In addition to Growth, Value and Momentum, A+ Investor also provides grades for Estimate Revisions and Quality.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Alarm.com Holdings, Inc., Arteris and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Alarm.com Holdings, Inc., Arteris or Inc. Stock?

Overall, Alarm.com Holdings, Inc. stock has a Value Score of 39, Growth Score of 100 and Momentum Score of 52.

Arteris, Inc. stock has a Value Score of 2, Growth Score of 47 and Momentum Score of 94.

Comparing Alarm.com Holdings, Inc., Arteris and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.