ADT vs ATP 30 Which Is a Better Investment?

ADT Inc. is a leading provider of security and automation solutions for homes and businesses. The company offers a range of services, including monitored security, interactive home and business automation, and video surveillance. On the other hand, ATP 30 stocks are a group of 30 stocks in the ATP World Tour Finals, an annual tennis tournament featuring the top eight male singles players and doubles teams in the ATP rankings. Both ADT and ATP 30 stocks are recognized for their excellence in their respective industries.

ADT or ATP 30?

When comparing ADT and ATP 30, 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 ATP 30.

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 2.66%, while ATP 30 has a dividend yield of 1.92%. 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, ATP 30 reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.59%.

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 7.68 and ATP 30's P/E ratio at 16.09. 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 1.75 while ATP 30's P/B ratio is 1.30.

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 ATP 30's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and ATP 30's ROE at 8.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.51 for ADT and ฿1.03 for ATP 30. Over the past year, ADT's prices ranged from $6.02 to $8.25, with a yearly change of 37.04%. ATP 30's prices fluctuated between ฿0.81 and ฿1.33, with a yearly change of 64.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.