ADT Inc. (ADT) vs Geo Group Inc (The) (GEO)

ADT Inc. and Geo Group Inc (The) 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 13.4×. Geo Group Inc (The) grew revenue faster over the last twelve months: 15.4% against 2.10%. ADT Inc. has the higher net margin (11.9% vs 10.3%) and the higher return on invested capital (7.23% vs 6.64%). Across the 22 metrics below, ADT Inc. leads on 13 and Geo Group Inc (The) on 9.

Valuation

Metric ADT GEO Security & Protection Services median
P/E 8.94 13.39 22.21
P/S 1.01 1.32 1.12
P/B 1.51 2.47 2.11
Price to free cash flow 3.24 10.76 20.05
EV/EBITDA 4.98 11.38 11.50
EV/Sales 2.50 1.84 2.08
Earnings yield 11.19% 7.47% 2.19%
Free cash flow yield 30.82% 9.30% 2.44%

Profitability

Metric ADT GEO Security & Protection Services median
Gross margin 80.71% 26.04% 41.45%
Operating margin 24.96% 11.16% 8.06%
Net margin 11.86% 10.31% 3.11%
Free cash flow margin 31.25% 12.31% 1.45%
Return on equity 17.17% 20.13% 5.40%
Return on assets 3.86% 7.88% 1.07%
Return on invested capital 7.23% 6.64% 2.40%

Growth

Metric ADT GEO Security & Protection Services median
Revenue growth (TTM) 2.10% 15.35% 6.22%
EPS growth (last fiscal year) 28.85% 727.27% 29.52%
Revenue growth, 5-year CAGR (0.71%) 2.29% 7.35%
Net income growth, 5-year CAGR 0.00% 17.61% 0.00%

Health

Metric ADT GEO Security & Protection Services median
Debt to equity 2.21 1.00 0.20
Current ratio 0.69 1.65 1.93
Net debt to EBITDA 2.93 3.99 1.55

Dividend

Metric ADT GEO Security & Protection Services median
Dividend yield 3.20% — 1.72%
Payout ratio 0.31 — 0.28

Size

Metric ADT GEO Security & Protection Services median
Market cap 5.01b 3.86b 394.99m

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