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 $1.1B against $347.2M — 3.1× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; NAPCO Security Technologies, Inc. trades at 24.4×. NAPCO Security Technologies, Inc. grew revenue faster over the last twelve months: 8.75% against 4.32%. NAPCO Security Technologies, Inc. has the higher net margin (21.6% vs −2.98%) and the higher return on invested capital (45.3% vs 2.60%). Both pay a dividend; NLI Holdings, Inc. yields more (5.78% vs 2.03%). Across the 21 metrics below, NAPCO Security Technologies, Inc. leads on 14 and NLI Holdings, Inc. on 7.

Valuation

Metric NL NSSC Security & Protection Services median
P/E n/m 24.41 22.53
P/S 1.99 5.30 1.17
P/B 0.84 5.44 2.09
Price to free cash flow 34.38 21.50 19.49
EV/EBITDA 11.17 19.60 11.17
EV/Sales 1.33 4.66 1.97
Earnings yield (1.48%) 4.10% 3.26%
Free cash flow yield 2.91% 4.65% 1.46%

Profitability

Metric NL NSSC Security & Protection Services median
Gross margin 32.50% 59.71% 38.10%
Operating margin 9.80% 22.70% 9.80%
Net margin (2.98%) 21.60% 2.88%
Free cash flow margin 5.79% 24.66% 0.00%
Return on equity (1.26%) 23.44% 8.74%
Return on assets (1.00%) 20.06% 1.21%
Return on invested capital 2.60% 45.33% 1.98%

Growth

Metric NL NSSC Security & Protection Services median
Revenue growth (TTM) 4.32% 8.75% 7.23%
EPS growth (last fiscal year) (155.80%) 0.84% 35.69%
Revenue growth, 5-year CAGR 6.68% 12.15% 7.09%
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 7.25 7.23 1.92
Net debt to EBITDA (7.90) (2.88) 1.55

Dividend

Metric NL NSSC Security & Protection Services median
Dividend yield 5.78% 2.03% 1.65%
Payout ratio — 0.49 0.28

Size

Metric NL NSSC Security & Protection Services median
Market cap 347.18m 1.07b 408.73m

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