ADT Inc. (ADT) vs NAPCO Security Technologies, Inc. (NSSC)

ADT Inc. and NAPCO Security Technologies, Inc. are both Security & Protection Services companies. ADT Inc. is the larger, with a market value of $5.0B against $1.3B — 3.9× the size. ADT Inc. trades at the lower P/E: 8.9× against 29.4×. NAPCO Security Technologies, Inc. grew revenue faster over the last twelve months: 11.4% against 2.10%. NAPCO Security Technologies, Inc. has the higher net margin (21.3% vs 11.9%) and the higher return on invested capital (53.4% vs 7.23%). Both pay a dividend; ADT Inc. yields more (3.20% vs 1.72%). Across the 23 metrics below, ADT Inc. leads on 13 and NAPCO Security Technologies, Inc. on 10.

Valuation

Metric ADT NSSC Security & Protection Services median
P/E 8.94 29.36 22.21
P/S 1.01 6.27 1.12
P/B 1.51 6.64 2.11
Price to free cash flow 3.24 21.40 20.05
EV/EBITDA 4.98 23.70 11.50
EV/Sales 2.50 5.61 2.08
Earnings yield 11.19% 3.41% 2.19%
Free cash flow yield 30.82% 4.67% 2.44%

Profitability

Metric ADT NSSC Security & Protection Services median
Gross margin 80.71% 59.21% 41.45%
Operating margin 24.96% 22.56% 8.06%
Net margin 11.86% 21.27% 3.11%
Free cash flow margin 31.25% 29.27% 1.45%
Return on equity 17.17% 23.93% 5.40%
Return on assets 3.86% 19.70% 1.07%
Return on invested capital 7.23% 53.38% 2.40%

Growth

Metric ADT NSSC Security & Protection Services median
Revenue growth (TTM) 2.10% 11.39% 6.22%
EPS growth (last fiscal year) 28.85% 0.84% 29.52%
Revenue growth, 5-year CAGR (0.71%) 12.15% 7.35%
Net income growth, 5-year CAGR 0.00% 22.79% 0.00%

Health

Metric ADT NSSC Security & Protection Services median
Debt to equity 2.21 0.00 0.20
Current ratio 0.69 4.90 1.93
Net debt to EBITDA 2.93 (2.88) 1.55

Dividend

Metric ADT NSSC Security & Protection Services median
Dividend yield 3.20% 1.72% 1.72%
Payout ratio 0.31 0.50 0.28

Size

Metric ADT NSSC Security & Protection Services median
Market cap 5.01b 1.29b 394.99m

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