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 $4.7B against $1.3B — 3.7× the size. ADT Inc. trades at the lower P/E: 8.3× against 29.5×. 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 (2.16% vs 0.35%). 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 8.31 29.47 21.88
P/S 0.94 6.29 1.21
P/B 1.40 6.66 2.21
Price to free cash flow 3.02 21.49 20.62
EV/EBITDA 4.84 23.89 12.37
EV/Sales 2.43 5.65 1.86
Earnings yield 12.03% 3.39% 3.67%
Free cash flow yield 33.13% 4.65% 1.13%

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% 3.72%
Free cash flow margin 31.25% 29.27% 1.45%
Return on equity 17.17% 23.93% 9.87%
Return on assets 3.86% 19.70% 2.54%
Return on invested capital 7.23% 53.38% 3.11%

Growth

Metric ADT NSSC Security & Protection Services median
Revenue growth (TTM) 2.10% 11.39% 5.96%
EPS growth (last fiscal year) 28.85% 0.84% —
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 2.16% 0.35% 1.53%
Payout ratio — 0.09 0.00

Size

Metric ADT NSSC Security & Protection Services median
Market cap 4.69b 1.28b 395.79m

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