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 $7.2B against $1.1B — 6.8× the size. ADT Inc. trades at the lower P/E: 12.4× against 24.4×. NAPCO Security Technologies, Inc. grew revenue faster over the last twelve months: 8.75% against 2.02%. NAPCO Security Technologies, Inc. has the higher net margin (21.6% vs 11.9%) and the higher return on invested capital (45.3% vs 7.19%). Both pay a dividend; ADT Inc. yields more (2.22% vs 2.03%). 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 12.42 24.41 22.53
P/S 1.39 5.30 1.17
P/B 1.99 5.44 2.09
Price to free cash flow 4.50 21.50 19.49
EV/EBITDA 5.72 19.60 11.17
EV/Sales 2.83 4.66 1.97
Earnings yield 8.05% 4.10% 3.26%
Free cash flow yield 22.20% 4.65% 1.46%

Profitability

Metric ADT NSSC Security & Protection Services median
Gross margin 80.09% 59.71% 38.10%
Operating margin 24.63% 22.70% 9.80%
Net margin 11.85% 21.60% 2.88%
Free cash flow margin 30.76% 24.66% 0.00%
Return on equity 16.94% 23.44% 8.74%
Return on assets 3.87% 20.06% 1.21%
Return on invested capital 7.19% 45.33% 1.98%

Growth

Metric ADT NSSC Security & Protection Services median
Revenue growth (TTM) 2.02% 8.75% 7.23%
EPS growth (last fiscal year) 28.85% 0.84% 35.69%
Revenue growth, 5-year CAGR (0.71%) 12.15% 7.09%
Net income growth, 5-year CAGR 0.00% 22.79% 0.00%

Health

Metric ADT NSSC Security & Protection Services median
Debt to equity 2.14 0.00 0.20
Current ratio 0.47 7.23 1.92
Net debt to EBITDA 2.93 (2.88) 1.55

Dividend

Metric ADT NSSC Security & Protection Services median
Dividend yield 2.22% 2.03% 1.65%
Payout ratio 0.30 0.49 0.28

Size

Metric ADT NSSC Security & Protection Services median
Market cap 7.23b 1.07b 408.73m

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