ADT vs Chubb

ADT and Chubb are two prominent companies in the security sector, offering a range of services to protect homes and businesses. While both companies operate in a similar industry, there are key differences in their business models and financial performance. ADT is more focused on residential security systems, while Chubb specializes in commercial security solutions. Investors may want to consider factors such as market trends, growth potential, and financial stability when evaluating the stocks of these two companies.

ADT or Chubb?

When comparing ADT and Chubb, 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 Chubb.

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 3.72%, while Chubb has a dividend yield of 1.55%. 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 21.75%. On the other hand, Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.45%.

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 9.19 and Chubb's P/E ratio at 11.97. 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 1.63 while Chubb's P/B ratio is 1.91.

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 Chubb's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 18.50% and Chubb's ROE at 16.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.83 for ADT and $287.12 for Chubb. Over the past year, ADT's prices ranged from $5.53 to $7.92, with a yearly change of 43.22%. Chubb's prices fluctuated between $205.64 and $294.18, with a yearly change of 43.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.