Brady Corporation (BRC) vs NAPCO Security Technologies, Inc. (NSSC)

Brady Corporation and NAPCO Security Technologies, Inc. are both Security & Protection Services companies. Brady Corporation is the larger, with a market value of $3.9B against $1.3B — 3.0× the size. Brady Corporation trades at the lower P/E: 19.3× against 29.5×. NAPCO Security Technologies, Inc. grew revenue faster over the last twelve months: 11.4% against 9.78%. NAPCO Security Technologies, Inc. has the higher net margin (21.3% vs 12.4%) and the higher return on invested capital (53.4% vs 13.9%). Both pay a dividend; Brady Corporation yields more (1.53% vs 0.35%). Across the 23 metrics below, NAPCO Security Technologies, Inc. leads on 13 and Brady Corporation on 10.

Valuation

Metric BRC NSSC Security & Protection Services median
P/E 19.31 29.47 21.88
P/S 2.39 6.29 1.21
P/B 2.93 6.66 2.21
Price to free cash flow 20.62 21.49 20.62
EV/EBITDA 12.37 23.89 12.37
EV/Sales 2.30 5.65 1.86
Earnings yield 5.18% 3.39% 3.67%
Free cash flow yield 4.85% 4.65% 1.13%

Profitability

Metric BRC NSSC Security & Protection Services median
Gross margin 51.75% 59.21% 41.45%
Operating margin 15.86% 22.56% 8.06%
Net margin 12.36% 21.27% 3.72%
Free cash flow margin 11.59% 29.27% 1.45%
Return on equity 16.11% 23.93% 9.87%
Return on assets 11.45% 19.70% 2.54%
Return on invested capital 13.89% 53.38% 3.11%

Growth

Metric BRC NSSC Security & Protection Services median
Revenue growth (TTM) 9.78% 11.39% 5.96%
EPS growth (last fiscal year) 9.14% 0.84% —
Revenue growth, 5-year CAGR 7.74% 12.15% 7.35%
Net income growth, 5-year CAGR 9.64% 22.79% 0.00%

Health

Metric BRC NSSC Security & Protection Services median
Debt to equity 0.01 0.00 0.20
Current ratio 1.94 4.90 1.93
Net debt to EBITDA (0.56) (2.88) 1.55

Dividend

Metric BRC NSSC Security & Protection Services median
Dividend yield 1.53% 0.35% 1.53%
Payout ratio 0.26 0.09 0.00

Size

Metric BRC NSSC Security & Protection Services median
Market cap 3.88b 1.28b 395.79m

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