Contrasting SU Group (NASDAQ:SUGP) and ADT (NYSE:ADT)

SU Group (NASDAQ:SUGP) and ADT (NYSE:ADT) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SU Group	N/A	N/A	N/A
ADT	8.69%	14.85%	2.96%

Institutional and Insider Ownership

68.1% of SU Group shares are held by institutional investors. Comparatively, 87.2% of ADT shares are held by institutional investors. 2.2% of ADT shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for SU Group and ADT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SU Group	0	0	0	0	N/A
ADT	1	1	1	0	2.00

ADT has a consensus price target of $8.58, indicating a potential upside of 34.40%. Given ADT’s higher probable upside, analysts plainly believe ADT is more favorable than SU Group.

Valuation & Earnings

This table compares SU Group and ADT’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SU Group	$20.91 million	1.31	$1.24 million	N/A	N/A
ADT	$4.98 billion	1.18	$463.01 million	$0.50	12.76

ADT has higher revenue and earnings than SU Group.

Summary

ADT beats SU Group on 9 of the 10 factors compared between the two stocks.

About SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.

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.