ADT (NYSE:ADT – Get Free Report) and Capstone Cos. (OTCMKTS:CAPC – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Profitability
This table compares ADT and Capstone Cos.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ADT | 12.30% | 18.58% | 4.35% |
| Capstone Cos. | N/A | N/A | -23.13% |
Analyst Ratings
This is a summary of current recommendations and price targets for ADT and Capstone Cos., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ADT | 0 | 4 | 3 | 0 | 2.43 |
| Capstone Cos. | 0 | 0 | 0 | 0 | 0.00 |
Volatility & Risk
ADT has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Capstone Cos. has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500.
Insider and Institutional Ownership
87.2% of ADT shares are held by institutional investors. 2.7% of ADT shares are held by insiders. Comparatively, 40.0% of Capstone Cos. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares ADT and Capstone Cos.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ADT | $4.90 billion | 1.42 | $501.05 million | $0.66 | 12.70 |
| Capstone Cos. | $140,000.00 | 19.43 | -$960,000.00 | ($0.01) | -5.48 |
ADT has higher revenue and earnings than Capstone Cos.. Capstone Cos. is trading at a lower price-to-earnings ratio than ADT, indicating that it is currently the more affordable of the two stocks.
Summary
ADT beats Capstone Cos. on 12 of the 14 factors compared between the two stocks.
About ADT
ADT Inc. provides security, interactive, and smart home solutions to residential and small business customers in the United States. It operates through two segments, Consumer and Small Business, and Solar. The company provides burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems. It primarily offers security designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal medical emergencies, such as injuries or unanticipated falls. The company also provides automation and smart home solutions that allow customers to use their smart phones, smart phone application, or touchscreen panels in their homes to arm and disarm their security systems; record and view real-time video; and creates customized and automated schedules for connected devices; programs systems to react to defined events; integrates system with third-party connected devices, such as cameras, lights, thermostats, appliances, and garage doors, as well as offers monitoring and maintenance services. In addition, the company offers energy storage solutions, energy efficiency upgrades, and roofing services. It offers its products under the ADT, ADT Pulse, ADT+, and ADT Commercial brand names. The company was formerly known as Prime Security Services Parent, Inc. and changed its name to ADT Inc. in September 2017. ADT Inc. was founded in 1874 and is headquartered in Boca Raton, Florida.
About Capstone Cos.
Capstone Companies, Inc., through its subsidiaries, operates as a designer, manufacturer, and marketer of consumer products to simplify daily living through technology. The company offers Connected Chef, a purpose-built kitchen appliance tablet with an integrated platform for cooking accessories, such as cutting board, as well as Smart Mirrors. It sells its products through sales agents, as well as directly to home-goods chain retailers. The company was formerly known as CHDT Corporation and changed its name to Capstone Companies, Inc. in June 2012. Capstone Companies, Inc. was incorporated in 1996 and is headquartered in Deerfield Beach, Florida.
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