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 Unity Software Inc., Alarm.com Holdings 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 Unity Software Inc., Alarm.com Holdings and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Unity Software Inc., Alarm.com Holdings and Inc.

Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, government, and non-profit institutions; mid-sized, small, and independent businesses; and individuals from various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.

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.

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

As of September 4, 2026, Unity Software Inc. had a $18.3 billion market capitalization, compared to the Software median of $1.1 million. Unity Software Inc.’s stock is down 5.7% in 2026, down 3.8% in the previous five trading days and up 3.68% in the past year.

Currently, Unity Software Inc. does not have a price-earnings ratio. Unity Software Inc.’s trailing 12-month revenue is $2.0 billion with a -29.0% net profit margin. Year-over-year quarterly sales growth most recently was 24.0%. Analysts expect adjusted earnings to reach $1.211 per share for the current fiscal year. Unity Software Inc. does not currently pay a dividend.

As of September 4, 2026, Alarm.com Holdings, Inc. had a $2.8 billion market cap, putting it in the 58th percentile of all stocks. Alarm.com Holdings, Inc.’s stock is up 10.7% in 2026, down 1.7% in the previous five trading days and down 1.07% in the past year.

Currently, Alarm.com Holdings, Inc.’s price-earnings ratio is 25.0. Alarm.com Holdings, Inc.’s trailing 12-month revenue is $1.1 billion with a 11.1% net profit margin. Year-over-year quarterly sales growth most recently was 9.2%. Analysts expect adjusted earnings to reach $2.893 per share for the current fiscal year. Alarm.com Holdings, Inc. does not currently pay a dividend.

How We Compare Unity Software Inc., Alarm.com Holdings 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 Unity Software Inc., Alarm.com Holdings and Inc.’s stock grades to see how they measure up against one another.

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Unity Software Inc., Alarm.com Holdings and Inc. Stock Value Grades

Company	Ticker	Value
Unity Software Inc.	U	F
Alarm.com Holdings, Inc.	ALRM	D

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.

Unity Software Inc. has a Value Score of 7, which is Ultra Expensive. Alarm.com Holdings, Inc. has a Value Score of 38, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither Unity Software Inc., Alarm.com Holdings 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 Unity Software Inc., Alarm.com Holdings or Inc. is the better investment when it comes to value.

Unity Software Inc., Alarm.com Holdings and Inc.’s Quality Grades

Company	Ticker	Quality
Unity Software Inc.	U	C
Alarm.com Holdings, Inc.	ALRM	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks 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 the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Unity Software Inc. has a Quality Score of 52, which is Average. Alarm.com Holdings, Inc. has a Quality Score of 97, which is Very Strong.

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

As you can clearly see from the Quality Grade breakdown above, Alarm.com Holdings, Inc. has a better overall quality grade than Unity Software Inc.. For investors who are looking for companies with higher quality than others in the same industry, Alarm.com Holdings, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Unity Software Inc., Alarm.com Holdings and Inc.’s Momentum Grades

Company	Ticker	Momentum
Unity Software Inc.	U	B
Alarm.com Holdings, Inc.	ALRM	C

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%.

Unity Software Inc. has a Momentum Score of 80, which is Strong. Alarm.com Holdings, Inc. has a Momentum Score of 58, which is Average.

The Momentum Grade Winner: Unity Software Inc.

As you can clearly see from the Momentum Grade breakdown above, Unity Software 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, Unity Software 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 Unity Software Inc., Alarm.com Holdings and Inc. Grades

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

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).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

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 Unity Software Inc., Alarm.com Holdings and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

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

Overall, Unity Software Inc. stock has a Value Score of 7, Momentum Score of 80 and Quality Score of 52.

Alarm.com Holdings, Inc. stock has a Value Score of 38, Momentum Score of 58 and Quality Score of 97.

Comparing Unity Software Inc., Alarm.com Holdings 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.