ADT Inc. (ADT) vs Allegion PLC (ALLE)

ADT Inc. and Allegion PLC are both Security & Protection Services companies. Allegion PLC is the larger, with a market value of $13.0B against $4.7B — 2.8× the size. ADT Inc. trades at the lower P/E: 8.3× against 20.2×. Allegion PLC grew revenue faster over the last twelve months: 10.6% against 2.10%. Allegion PLC has the higher net margin (15.4% vs 11.9%) and the higher return on invested capital (14.6% vs 7.23%). Both pay a dividend; ADT Inc. yields more (2.16% vs 1.38%). Across the 23 metrics below, ADT Inc. leads on 13 and Allegion PLC on 10.

Valuation

Metric ADT ALLE Security & Protection Services median
P/E 8.31 20.24 21.88
P/S 0.94 3.09 1.21
P/B 1.40 6.26 2.21
Price to free cash flow 3.02 19.78 20.62
EV/EBITDA 4.84 14.46 12.37
EV/Sales 2.43 3.49 1.86
Earnings yield 12.03% 4.94% 3.67%
Free cash flow yield 33.13% 5.06% 1.13%

Profitability

Metric ADT ALLE Security & Protection Services median
Gross margin 80.71% 44.80% 41.45%
Operating margin 24.96% 20.83% 8.06%
Net margin 11.86% 15.36% 3.72%
Free cash flow margin 31.25% 15.65% 1.45%
Return on equity 17.17% 33.73% 9.87%
Return on assets 3.86% 12.82% 2.54%
Return on invested capital 7.23% 14.58% 3.11%

Growth

Metric ADT ALLE Security & Protection Services median
Revenue growth (TTM) 2.10% 10.63% 5.96%
EPS growth (last fiscal year) 28.85% 9.09% —
Revenue growth, 5-year CAGR (0.71%) 8.38% 7.35%
Net income growth, 5-year CAGR 0.00% 15.42% 0.00%

Health

Metric ADT ALLE Security & Protection Services median
Debt to equity 2.21 0.96 0.20
Current ratio 0.69 1.93 1.93
Net debt to EBITDA 2.93 1.64 1.55

Dividend

Metric ADT ALLE Security & Protection Services median
Dividend yield 2.16% 1.38% 1.53%
Payout ratio — 0.29 0.00

Size

Metric ADT ALLE Security & Protection Services median
Market cap 4.69b 12.97b 395.79m

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