ADT Inc. (ADT) vs Brady Corporation (BRC)

ADT Inc. and Brady Corporation are both Security & Protection Services companies. ADT Inc. is the larger, with a market value of $5.0B against $3.9B — 1.3× the size. ADT Inc. trades at the lower P/E: 8.9× against 18.8×. Brady Corporation grew revenue faster over the last twelve months: 9.78% against 2.10%. Brady Corporation has the higher net margin (12.4% vs 11.9%) and the higher return on invested capital (13.9% vs 7.23%). Both pay a dividend; ADT Inc. yields more (3.20% vs 1.20%). Across the 23 metrics below, ADT Inc. leads on 13 and Brady Corporation on 10.

Valuation

Metric ADT BRC Security & Protection Services median
P/E 8.94 18.83 22.21
P/S 1.01 2.33 1.12
P/B 1.51 2.85 2.11
Price to free cash flow 3.24 20.11 20.05
EV/EBITDA 4.98 12.16 11.50
EV/Sales 2.50 2.26 2.08
Earnings yield 11.19% 5.31% 2.19%
Free cash flow yield 30.82% 4.97% 2.44%

Profitability

Metric ADT BRC Security & Protection Services median
Gross margin 80.71% 51.75% 41.45%
Operating margin 24.96% 15.86% 8.06%
Net margin 11.86% 12.36% 3.11%
Free cash flow margin 31.25% 11.59% 1.45%
Return on equity 17.17% 16.11% 5.40%
Return on assets 3.86% 11.45% 1.07%
Return on invested capital 7.23% 13.89% 2.40%

Growth

Metric ADT BRC Security & Protection Services median
Revenue growth (TTM) 2.10% 9.78% 6.22%
EPS growth (last fiscal year) 28.85% 9.14% 29.52%
Revenue growth, 5-year CAGR (0.71%) 7.74% 7.35%
Net income growth, 5-year CAGR 0.00% 9.64% 0.00%

Health

Metric ADT BRC Security & Protection Services median
Debt to equity 2.21 0.01 0.20
Current ratio 0.69 1.94 1.93
Net debt to EBITDA 2.93 (0.56) 1.55

Dividend

Metric ADT BRC Security & Protection Services median
Dividend yield 3.20% 1.20% 1.72%
Payout ratio 0.31 0.23 0.28

Size

Metric ADT BRC Security & Protection Services median
Market cap 5.01b 3.94b 394.99m

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