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 $7.2B against $3.3B — 2.2× the size. Geo Group Inc (The) trades at the lower P/E: 11.8× against 12.4×. Geo Group Inc (The) grew revenue faster over the last twelve months: 15.4% against 2.02%. ADT Inc. has the higher net margin (11.9% vs 10.3%) and the higher return on invested capital (7.19% vs 6.64%). Across the 22 metrics below, Geo Group Inc (The) leads on 12 and ADT Inc. on 10.

Valuation

Metric ADT GEO Security & Protection Services median
P/E 12.42 11.85 22.53
P/S 1.39 1.17 1.17
P/B 1.99 2.19 2.09
Price to free cash flow 4.50 9.51 19.49
EV/EBITDA 5.72 10.44 11.17
EV/Sales 2.83 1.69 1.97
Earnings yield 8.05% 8.44% 3.26%
Free cash flow yield 22.20% 10.51% 1.46%

Profitability

Metric ADT GEO Security & Protection Services median
Gross margin 80.09% 26.04% 38.10%
Operating margin 24.63% 11.16% 9.80%
Net margin 11.85% 10.31% 2.88%
Free cash flow margin 30.76% 12.31% 0.00%
Return on equity 16.94% 20.13% 8.74%
Return on assets 3.87% 7.88% 1.21%
Return on invested capital 7.19% 6.64% 1.98%

Growth

Metric ADT GEO Security & Protection Services median
Revenue growth (TTM) 2.02% 15.35% 7.23%
EPS growth (last fiscal year) 28.85% 727.27% 35.69%
Revenue growth, 5-year CAGR (0.71%) 2.29% 7.09%
Net income growth, 5-year CAGR 0.00% 17.61% 0.00%

Health

Metric ADT GEO Security & Protection Services median
Debt to equity 2.14 1.00 0.20
Current ratio 0.47 1.65 1.92
Net debt to EBITDA 2.93 3.99 1.55

Dividend

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

Size

Metric ADT GEO Security & Protection Services median
Market cap 7.23b 3.31b 408.73m

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