ADT vs AMP Which Is More Favorable?

When it comes to investing in the security industry, two companies that often come up for comparison are ADT and AMP. ADT is a well-known provider of security systems and monitoring services, while AMP is a leading provider of integrated security solutions for both residential and commercial properties. Both companies have their own strengths and weaknesses, making them popular choices for investors looking to capitalize on the growing demand for security technology. In this article, we will explore the key differences between ADT and AMP stocks, helping you make an informed decision on which security company to invest in.

ADT or AMP?

When comparing ADT and AMP, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ADT and AMP.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ADT has a dividend yield of 3.3%, while AMP has a dividend yield of 2.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ADT reports a 5-year dividend growth of 0.00% year and a payout ratio of 18.54%. On the other hand, AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ADT P/E ratio at 7.88 and AMP's P/E ratio at 32.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ADT P/B ratio is 1.79 while AMP's P/B ratio is 1.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ADT has seen a 5-year revenue growth of -0.11%, while AMP's is -0.67%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and AMP's ROE at 3.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.70 for ADT and $0.66 for AMP. Over the past year, ADT's prices ranged from $5.63 to $8.25, with a yearly change of 46.54%. AMP's prices fluctuated between $0.58 and $0.94, with a yearly change of 62.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.