ADT Inc. (ADT) vs Evolv Technologies Holdings, Inc. (EVLV)

ADT Inc. and Evolv Technologies Holdings, Inc. are both Security & Protection Services companies. ADT Inc. is the larger, with a market value of $4.8B against $829.6M — 5.7× the size. Evolv Technologies Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; ADT Inc. trades at 8.4×. Evolv Technologies Holdings, Inc. grew revenue faster over the last twelve months: 41.7% against 2.10%. ADT Inc. has the higher net margin (11.9% vs −3.05%) and the higher return on invested capital (7.23% vs −26.4%). Across the 18 metrics below, ADT Inc. leads on 12 and Evolv Technologies Holdings, Inc. on 6.

Valuation

Metric ADT EVLV Security & Protection Services median
P/E 8.35 n/m 22.42
P/S 0.95 4.76 1.14
P/B 1.41 6.86 2.26
Price to free cash flow 3.03 n/m 20.30
EV/EBITDA 4.84 n/m 12.43
EV/Sales 2.43 4.62 2.04
Earnings yield 11.98% (0.66%) 2.12%
Free cash flow yield 32.98% (0.68%) 2.30%

Profitability

Metric ADT EVLV Security & Protection Services median
Gross margin 80.71% 49.86% 41.45%
Operating margin 24.96% (20.77%) 8.06%
Net margin 11.86% (3.05%) 3.11%
Free cash flow margin 31.25% (3.23%) 1.45%
Return on equity 17.17% (4.94%) 5.40%
Return on assets 3.86% (1.79%) 1.07%
Return on invested capital 7.23% (26.42%) 2.40%

Growth

Metric ADT EVLV Security & Protection Services median
Revenue growth (TTM) 2.10% 41.67% 6.22%
EPS growth (last fiscal year) 28.85% 41.18% 29.52%
Revenue growth, 5-year CAGR (0.71%) 98.08% 7.35%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ADT EVLV Security & Protection Services median
Debt to equity 2.21 0.24 0.20
Current ratio 0.69 1.18 1.93
Net debt to EBITDA 2.93 1.68 1.55

Dividend

Metric ADT EVLV Security & Protection Services median
Dividend yield 3.42% — 1.44%
Payout ratio 0.31 — 0.29

Size

Metric ADT EVLV Security & Protection Services median
Market cap 4.75b 829.56m 413.94m

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