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 $4.7B against $3.9B — 1.2× the size. ADT Inc. trades at the lower P/E: 8.3× against 19.3×. 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 (2.16% vs 1.53%). 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 8.31 19.31 21.88
P/S 0.94 2.39 1.21
P/B 1.40 2.93 2.21
Price to free cash flow 3.02 20.62 20.62
EV/EBITDA 4.84 12.37 12.37
EV/Sales 2.43 2.30 1.86
Earnings yield 12.03% 5.18% 3.67%
Free cash flow yield 33.13% 4.85% 1.13%

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% 3.72%
Free cash flow margin 31.25% 11.59% 1.45%
Return on equity 17.17% 16.11% 9.87%
Return on assets 3.86% 11.45% 2.54%
Return on invested capital 7.23% 13.89% 3.11%

Growth

Metric ADT BRC Security & Protection Services median
Revenue growth (TTM) 2.10% 9.78% 5.96%
EPS growth (last fiscal year) 28.85% 9.14% —
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 2.16% 1.53% 1.53%
Payout ratio — 0.26 0.00

Size

Metric ADT BRC Security & Protection Services median
Market cap 4.69b 3.88b 395.79m

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