ADT Inc. (ADT) vs MSA Safety Incorporporated (MSA)

ADT Inc. and MSA Safety Incorporporated are both Security & Protection Services companies. MSA Safety Incorporporated is the larger, with a market value of $7.0B against $4.7B — 1.5× the size. ADT Inc. trades at the lower P/E: 8.3× against 22.6×. MSA Safety Incorporporated grew revenue faster over the last twelve months: 6.48% against 2.10%. MSA Safety Incorporporated has the higher net margin (16.1% vs 11.9%) and the higher return on invested capital (14.4% vs 7.23%). Both pay a dividend; ADT Inc. yields more (2.16% vs 1.07%). Across the 23 metrics below, ADT Inc. leads on 13 and MSA Safety Incorporporated on 10.

Valuation

Metric ADT MSA Security & Protection Services median
P/E 8.31 22.64 21.88
P/S 0.94 3.62 1.21
P/B 1.40 5.04 2.21
Price to free cash flow 3.02 19.89 20.62
EV/EBITDA 4.84 15.24 12.37
EV/Sales 2.43 3.82 1.86
Earnings yield 12.03% 4.42% 3.67%
Free cash flow yield 33.13% 5.03% 1.13%

Profitability

Metric ADT MSA Security & Protection Services median
Gross margin 80.71% 47.57% 41.45%
Operating margin 24.96% 21.23% 8.06%
Net margin 11.86% 16.13% 3.72%
Free cash flow margin 31.25% 18.21% 1.45%
Return on equity 17.17% 23.72% 9.87%
Return on assets 3.86% 12.19% 2.54%
Return on invested capital 7.23% 14.40% 3.11%

Growth

Metric ADT MSA Security & Protection Services median
Revenue growth (TTM) 2.10% 6.48% 5.96%
EPS growth (last fiscal year) 28.85% (1.66%) —
Revenue growth, 5-year CAGR (0.71%) 6.82% 7.35%
Net income growth, 5-year CAGR 0.00% 17.60% 0.00%

Health

Metric ADT MSA Security & Protection Services median
Debt to equity 2.21 0.42 0.20
Current ratio 0.69 3.24 1.93
Net debt to EBITDA 2.93 0.92 1.55

Dividend

Metric ADT MSA Security & Protection Services median
Dividend yield 2.16% 1.07% 1.53%
Payout ratio — 5.61 0.00

Size

Metric ADT MSA Security & Protection Services median
Market cap 4.69b 7.03b 395.79m

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