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 $330.1M — 3.9× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; NAPCO Security Technologies, Inc. trades at 29.4×. 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 (5.88% vs 1.72%). 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 29.36 22.21
P/S 2.00 6.27 1.12
P/B 0.85 6.64 2.11
Price to free cash flow 39.99 21.40 20.05
EV/EBITDA 11.61 23.70 11.50
EV/Sales 1.33 5.61 2.08
Earnings yield (7.84%) 3.41% 2.19%
Free cash flow yield 2.50% 4.67% 2.44%

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% 3.11%
Free cash flow margin 5.01% 29.27% 1.45%
Return on equity (6.40%) 23.93% 5.40%
Return on assets (5.14%) 19.70% 1.07%
Return on invested capital 3.44% 53.38% 2.40%

Growth

Metric NL NSSC Security & Protection Services median
Revenue growth (TTM) 5.96% 11.39% 6.22%
EPS growth (last fiscal year) (155.80%) 0.84% 29.52%
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 5.88% 1.72% 1.72%
Payout ratio — 0.50 0.28

Size

Metric NL NSSC Security & Protection Services median
Market cap 330.07m 1.29b 394.99m

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