Comparing G4S (OTCMKTS:GFSZY) & ADT (NYSE:ADT)

ADT (NYSE:ADT) and G4S (OTCMKTS:GFSZY) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for ADT and G4S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADT	0	5	1	0	2.17
G4S	0	0	0	0	0.00

ADT currently has a consensus target price of $9.25, suggesting a potential upside of 14.41%. Given ADT’s stronger consensus rating and higher probable upside, equities analysts plainly believe ADT is more favorable than G4S.

Insider & Institutional Ownership

87.2% of ADT shares are owned by institutional investors. 2.7% of ADT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ADT and G4S”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADT	$4.90 billion	1.35	$501.05 million	$0.69	11.72
G4S	N/A	N/A	N/A	N/A	N/A

ADT has higher revenue and earnings than G4S.

Profitability

This table compares ADT and G4S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADT	12.52%	18.96%	4.38%
G4S	N/A	N/A	N/A

Summary

ADT beats G4S on 9 of the 9 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 G4S

G4S plc, together with its subsidiaries, operates as an integrated security company in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence-based risk assessment, incident management, and travel advisory systems, such as symmetry incident management; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides retail technology solutions, comprising of Retail Cash Solutions, CASH360, and South Africa-Deposita; security advice, risk mitigation strategies, secure support, and integrated solutions; and offer custody, detention, rehabilitation, and care services. The company serves corporates, financial institutions, private energy/utilities, retail, leisure and consumers, private energy/utilities, transport, ports, and aviation. G4S plc was founded in 1901 and is headquartered in London, the United Kingdom. G4S plc is a subsidiary of Atlas UK Bidco Limited.