ADT Inc. (ADT) vs CoreCivic, Inc. (CXW)

ADT Inc. and CoreCivic, Inc. are both Security & Protection Services companies. ADT Inc. is the larger, with a market value of $7.2B against $2.8B — 2.6× the size. CoreCivic, Inc. trades at the lower P/E: 1.8× against 12.4×. CoreCivic, Inc. grew revenue faster over the last twelve months: 26.9% against 2.02%. CoreCivic, Inc. has the higher net margin (54.6% vs 11.9%) and the lower return on invested capital (6.99% vs 7.19%). Across the 21 metrics below, CoreCivic, Inc. leads on 14 and ADT Inc. on 7.

Valuation

Metric ADT CXW Security & Protection Services median
P/E 12.42 1.84 22.53
P/S 1.39 1.00 1.17
P/B 1.99 1.16 2.09
Price to free cash flow 4.50 n/m 19.49
EV/EBITDA 5.72 6.69 11.17
EV/Sales 2.83 1.02 1.97
Earnings yield 8.05% 54.49% 3.26%
Free cash flow yield 22.20% (14.59%) 1.46%

Profitability

Metric ADT CXW Security & Protection Services median
Gross margin 80.09% 22.18% 38.10%
Operating margin 24.63% 9.88% 9.80%
Net margin 11.85% 54.60% 2.88%
Free cash flow margin 30.76% (14.54%) 0.00%
Return on equity 16.94% 77.13% 8.74%
Return on assets 3.87% 42.58% 1.21%
Return on invested capital 7.19% 6.99% 1.98%

Growth

Metric ADT CXW Security & Protection Services median
Revenue growth (TTM) 2.02% 26.90% 7.23%
EPS growth (last fiscal year) 28.85% 74.19% 35.69%
Revenue growth, 5-year CAGR (0.71%) 3.02% 7.09%
Net income growth, 5-year CAGR 0.00% 16.56% 0.00%

Health

Metric ADT CXW Security & Protection Services median
Debt to equity 2.14 0.27 0.20
Current ratio 0.47 2.41 1.92
Net debt to EBITDA 2.93 3.16 1.55

Dividend

Metric ADT CXW Security & Protection Services median
Dividend yield 2.22% — 1.65%
Payout ratio 0.30 — 0.28

Size

Metric ADT CXW Security & Protection Services median
Market cap 7.23b 2.79b 408.73m

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