Who is it that you're trying to signal and why?
:spank:
Underwater, your buddy should never be more than a few feet away from you, close enough that you can get his attention with a loud "bnoorgle." Folks with sub-ducks and rattle-cans and other underwater noisemakers have a special place waiting for them in the next life, right next to the reef-grabbers.
:drown:
On the surface, should you get separated from your boat, you will want as much signalling capacity as you can get. Having spent some time in the water waiting for the boat to find me on more than one occasion, I don't dive without at least a surface marker. Additionally, on drift dives I take along a mirror, a whistle and, if the plan calls for fast currents or long distances from shore, a couple of dye packs.
:bang:
The DiveAlert is the more valuable tool of the two, but not by much. It will blow out your ears on the surface (really) and it has the added advantage of being nearly silent underwater, something we should all be striving for. I bought one and dragged it around for a couple of years, it now occupies a little patch on my Wall of Shame, where I put many of the dumb scuba toys I've wasted money on over the years. Spend your money on something worthwhile.