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 $4.7B against $3.4B — 1.4× the size. ADT Inc. trades at the lower P/E: 8.3× against 25.3×. CoreCivic, Inc. grew revenue faster over the last twelve months: 24.4% against 2.10%. ADT Inc. has the higher net margin (11.9% vs 5.15%) and the higher return on invested capital (7.23% vs 5.76%). Across the 22 metrics below, ADT Inc. leads on 14 and CoreCivic, Inc. on 8.

Valuation

Metric ADT CXW Security & Protection Services median
P/E 8.31 25.30 21.88
P/S 0.94 1.28 1.21
P/B 1.40 2.21 2.21
Price to free cash flow 3.02 44.17 20.62
EV/EBITDA 4.84 11.39 12.37
EV/Sales 2.43 1.77 1.86
Earnings yield 12.03% 3.95% 3.67%
Free cash flow yield 33.13% 2.26% 1.13%

Profitability

Metric ADT CXW Security & Protection Services median
Gross margin 80.71% 22.58% 41.45%
Operating margin 24.96% 9.88% 8.06%
Net margin 11.86% 5.15% 3.72%
Free cash flow margin 31.25% 2.90% 1.45%
Return on equity 17.17% 8.77% 9.87%
Return on assets 3.86% 3.92% 2.54%
Return on invested capital 7.23% 5.76% 3.11%

Growth

Metric ADT CXW Security & Protection Services median
Revenue growth (TTM) 2.10% 24.35% 5.96%
EPS growth (last fiscal year) 28.85% 74.19% —
Revenue growth, 5-year CAGR (0.71%) 3.02% 7.35%
Net income growth, 5-year CAGR 0.00% 16.56% 0.00%

Health

Metric ADT CXW Security & Protection Services median
Debt to equity 2.21 0.94 0.20
Current ratio 0.69 1.32 1.93
Net debt to EBITDA 2.93 3.16 1.55

Dividend

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

Size

Metric ADT CXW Security & Protection Services median
Market cap 4.69b 3.40b 395.79m

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