Head-To-Head Contrast: ADT (ADT) versus Its Peers

ADT (NYSE:ADT) is one of 165 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare ADT to similar companies based on the strength of its risk, institutional ownership, earnings, valuation, profitability, dividends and analyst recommendations.

Risk & Volatility

ADT has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, ADT’s competitors have a beta of 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ADT and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADT	1	4	2	0	2.14
ADT Competitors	1442	3454	5299	197	2.41

ADT presently has a consensus target price of $8.73, indicating a potential downside of 11.86%. As a group, “Diversified Consumer Services” companies have a potential upside of 63.63%. Given ADT’s competitors stronger consensus rating and higher probable upside, analysts plainly believe ADT has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares ADT and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADT	$5.13 billion	$595.95 million	13.39
ADT Competitors	$3.26 billion	$221.82 million	15.36

ADT has higher revenue and earnings than its competitors. ADT is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

ADT pays an annual dividend of $0.22 per share and has a dividend yield of 2.2%. ADT pays out 29.7% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.4% of their earnings in the form of a dividend. ADT has increased its dividend for 1 consecutive years.

Profitability

This table compares ADT and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADT	11.85%	18.57%	4.30%
ADT Competitors	-3.82%	-29.65%	2.33%

Insider and Institutional Ownership

87.2% of ADT shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 3.0% of ADT shares are owned by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

ADT beats its competitors on 8 of the 15 factors compared.

About ADT

ADT Inc. provides professionally monitored security, automation and smart-home services to residential customers and businesses in the United States. Its offerings include intrusion detection, video surveillance, fire and life-safety systems, and remote monitoring and control through connected devices and mobile apps. The company also serves commercial customers with security solutions such as access control, video surveillance and fire protection. ADT provides installation, maintenance and monitoring services, with offerings tailored to homes, small businesses and larger organizations.