ADT vs Brinker International Which Performs Better?

ADT Inc. and Brinker International Inc. are both publicly traded companies in the security and restaurant industries, respectively. ADT is a leading provider of security and automation solutions for residential and commercial customers, while Brinker International owns and operates popular restaurant chains like Chili's Grill & Bar and Maggiano's Little Italy. Investors looking to diversify their portfolio may consider the differences in these two sectors before making an investment decision in either ADT or Brinker International stocks.

ADT or Brinker International?

When comparing ADT and Brinker International, 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 Brinker International.

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 3.36%, while Brinker International has a dividend yield of -%. 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, Brinker International reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.11%.

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 7.76 and Brinker International's P/E ratio at 28.55. 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 1.77 while Brinker International's P/B ratio is 419.48.

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 Brinker International's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and Brinker International's ROE at -717.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.59 for ADT and $118.47 for Brinker International. Over the past year, ADT's prices ranged from $5.63 to $8.25, with a yearly change of 46.54%. Brinker International's prices fluctuated between $34.77 and $123.66, with a yearly change of 255.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.