ADT vs Chorus Which Is More Reliable?

ADT Inc. and Chorus Limited are two leading companies in the security and communications sectors. ADT specializes in providing home security solutions, while Chorus is a telecommunications company offering broadband services. Both companies have experienced growth in their respective industries, attracting investors looking for stable returns. However, their stocks have different risk profiles and performance histories. Understanding the key differences between ADT and Chorus stocks is crucial for investors seeking to diversify their portfolios effectively.

ADT or Chorus?

When comparing ADT and Chorus, 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 Chorus.

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 Chorus has a dividend yield of 5.83%. 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, Chorus reports a 5-year dividend growth of 7.80% year and a payout ratio of -3823.08%.

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 Chorus's P/E ratio at -711.34. 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 Chorus's P/B ratio is 5.50.

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 Chorus's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and Chorus's ROE at -0.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.51 for ADT and $25.13 for Chorus. Over the past year, ADT's prices ranged from $6.02 to $8.25, with a yearly change of 37.04%. Chorus's prices fluctuated between $20.85 and $28.24, with a yearly change of 35.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.