ALRM vs REZI: How Alarm.com and Resideo Technologies Compare (2026)
Last updated August 2026
Short answer
REZI is the larger of the two ($5.19B market cap): the incumbent the market prices for continued execution (11.31x forward earnings, beta 1.64). ALRM is the smaller challenger ($2.80B), actually pricier on forward earnings (19.07x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
ALRM vs REZI: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ALRM | REZI | What it tells you |
|---|---|---|---|
| Market cap | $2.80B | $5.19B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 19.07 | 11.31 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 0.76 | 1.64 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 84% of range | 46% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 3.25 | 2.13 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: REZI is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ALRM and REZI affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ALRM and REZI share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ALRM and REZI exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Alarm.com (ALRM) do?
Alarm.com Holdings, Inc. runs a cloud platform for connected property: intrusion detection, video surveillance, access control, thermostats, locks, lighting, and the mobile apps that tie them together. It does not sell to homeowners directly. Instead it licenses its software to a network of service providers, dealers, integrators and central monitoring stations, who install the equipment and bill the end customer, while Alarm.com collects a recurring per-property SaaS fee (roughly $5 to $6 a month for a residential account) and also resells hardware into the same channel. Beyond the residential core, the company has built out a commercial franchise (Alarm.com for Business, OpenEye video, CHeKT, Shooter Detection Systems) and an energy business, EnergyHub, that helps utilities orchestrate distributed resources like smart thermostats, batteries and EV chargers.
What does Resideo Technologies (REZI) do?
Resideo Technologies develops, manufactures, and sells comfort, energy-management, and safety-and-security solutions for homes and small businesses under brands including Honeywell Home, First Alert, BRK, Braukmann, and Resideo. Its products include thermostats and temperature and humidity controls, water and air solutions, smoke and carbon-monoxide detectors, residential security systems, and video cameras. The company runs two segments: Products and Solutions (the branded hardware plus cloud and software) and ADI Global Distribution, a large omnichannel wholesaler of security, AV, and smart-living products serving over 100,000 professional-installer customers. Resideo was spun out of Honeywell in 2018 and expanded its smart-living footprint by acquiring Snap One (owner of the Control4 platform) for about $1.4 billion in 2024.
ALRM vs REZI: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ALRM drivers: High-retention SaaS base; Commercial and enterprise expansion.
- REZI drivers: ADI Global Distribution spin-off; Branded products and smart-living platform.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The U.S. For REZI, resideo carries meaningful leverage taken on for the Snap One deal, and integration plus the pending ADI separation add execution and complexity risk.
ALRM or REZI: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ALRM if you believe its drivers more; REZI if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ALRM and REZI guides.
ALRM vs REZI: the full fundamentals
ALRM. Alarm.com trades at roughly 23x trailing earnings and about 20x forward, which is a modest multiple for a software-led business but consistent with high-single-digit to low-double-digit total revenue growth and a hardware drag on blended margins. Q1 2026 delivered ~$265.2 million in revenue (+11%), ~$49.6 million adjusted EBITDA and ~$49.7 million free cash flow, and cash stood at ~$497.4 million after the January 2026 settlement of $500 million of 0% convertible notes. Second-quarter 2026 results were scheduled for August 6, 2026, so the figures here reflect the trailing period through Q1.
REZI. Resideo trades around a mid-single-digit adjusted-EBITDA multiple, low relative to many industrials, which reflects its leverage, cyclicality, and the uncertainty around the ADI separation. Bulls argue the sum-of-the-parts is worth more once ADI is a standalone listing, while skeptics point to a 2025 GAAP net loss and contested acquisition accounting. Figures are approximate and as of JULY 2026.
Headline figures (approximate, August 2026): ALRM shows revenue (ttm) ~$1.04B (+8.6% YoY), net income (ttm) ~$128M, EPS ~$2.41, q1 2026 saas and license revenue ~$181.5M (+10.8% YoY), ~95.4% retention, market cap ~$2.8B at ~$57 a share; REZI shows revenue (2025) ~$7.47B, 2026 revenue guidance ~$7.8B-$7.9B, adjusted ebitda (2025) ~$833M, 2026 adjusted eps guidance ~$3.00-$3.20.
The bottom line: ALRM vs REZI
ALRM and REZI are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ALRM and REZI exposure against your real portfolio. It is not an investment adviser.
Wondering how ALRM or REZI fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Alarm.com with AI
Connect the broker you already use and ask Walnut's AI how ALRM fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ALRM and REZI?
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Alarm.com Holdings, Inc. Resideo Technologies develops, manufactures, and sells comfort, energy-management, and safety-and-security solutions for homes and small businesses under brands including Honeywell Home, First Alert, BRK, Braukmann, and Resideo. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ALRM or REZI the better stock?
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Neither is universally better. REZI is the larger incumbent; ALRM is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ALRM or REZI?
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On forward P/E (as of August 2026), ALRM trades at 19.07x and REZI at 11.31x, so REZI is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ALRM and REZI?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ALRM vs REZI?
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ALRM: The U.S. residential security market is mature, and a large share of Alarm.com's subscriber base sits in a category where DIY alternatives from Amazon Ring, Google Nest and SimpliSafe compete on price and convenience. Channel dependence is structural: Alarm.com does not own the end customer, so a large dealer switching platforms or being acquired by a competitor with an in-house stack can move revenue. Hardware, about a third of revenue, is low margin and exposed to tariffs, memory cost inflation and dealer inventory swings, and management already lowered second-half 2026 hardware guidance for those reasons. Two of the company's biggest partners, ADT and Vivint, have historically had incentives to develop or acquire competing platforms. Patent and trade-secret litigation is a recurring cost of doing business in this space, including an active SkyBell Technologies trade-secrets suit. REZI: Resideo carries meaningful leverage taken on for the Snap One deal, and integration plus the pending ADI separation add execution and complexity risk. Demand is cyclical and tied to housing, renovation, and interest-rate conditions, so a slowdown would pressure both segments. A short-seller report has publicly challenged the company's acquisition accounting and customer-life assumptions, which has weighed on sentiment. The spin-off itself may not deliver the value some investors expect, and stranded costs, dis-synergies, or a weak initial market reception for the separated entities are real possibilities. The company also reported a GAAP net loss in 2025 despite strong adjusted metrics, so the gap between GAAP and non-GAAP results is something to watch.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ALRM or REZI; figures are approximate and dated (as of August 2026). Verify current data before investing.