NLI Holdings, Inc. (NL) vs NAPCO Security Technologies, Inc. (NSSC)

NLI Holdings, Inc. and NAPCO Security Technologies, Inc. are both Security & Protection Services companies. NAPCO Security Technologies, Inc. is the larger, with a market value of $1.3B against $344.3M — 3.7× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; NAPCO Security Technologies, Inc. trades at 29.5×. NAPCO Security Technologies, Inc. grew revenue faster over the last twelve months: 11.4% against 5.96%. NAPCO Security Technologies, Inc. has the higher net margin (21.3% vs −15.8%) and the higher return on invested capital (53.4% vs 3.44%). Both pay a dividend; NLI Holdings, Inc. yields more (5.41% vs 0.35%). Across the 22 metrics below, NAPCO Security Technologies, Inc. leads on 15 and NLI Holdings, Inc. on 7.

Valuation

Metric NL NSSC Security & Protection Services median
P/E n/m 29.47 21.88
P/S 2.12 6.29 1.21
P/B 0.90 6.66 2.21
Price to free cash flow 42.34 21.49 20.62
EV/EBITDA 12.64 23.89 12.37
EV/Sales 1.44 5.65 1.86
Earnings yield (7.41%) 3.39% 3.67%
Free cash flow yield 2.36% 4.65% 1.13%

Profitability

Metric NL NSSC Security & Protection Services median
Gross margin 32.08% 59.21% 41.45%
Operating margin 9.25% 22.56% 8.06%
Net margin (15.79%) 21.27% 3.72%
Free cash flow margin 5.01% 29.27% 1.45%
Return on equity (6.40%) 23.93% 9.87%
Return on assets (5.14%) 19.70% 2.54%
Return on invested capital 3.44% 53.38% 3.11%

Growth

Metric NL NSSC Security & Protection Services median
Revenue growth (TTM) 5.96% 11.39% 5.96%
EPS growth (last fiscal year) (155.80%) 0.84% —
Revenue growth, 5-year CAGR 6.68% 12.15% 7.35%
Net income growth, 5-year CAGR 0.00% 22.79% 0.00%

Health

Metric NL NSSC Security & Protection Services median
Debt to equity 0.00 0.00 0.20
Current ratio 9.02 4.90 1.93
Net debt to EBITDA (7.90) (2.88) 1.55

Dividend

Metric NL NSSC Security & Protection Services median
Dividend yield 5.41% 0.35% 1.53%
Payout ratio 0.24 0.09 0.00

Size

Metric NL NSSC Security & Protection Services median
Market cap 344.25m 1.28b 395.79m

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