ADT vs Comcast Which Is Stronger?

ADT and Comcast are two companies competing in the home security and automation industry. ADT is a veteran in the industry, offering a wide range of security solutions for residential and commercial customers. Comcast, on the other hand, is a telecommunications giant that has expanded into the home security market with their Xfinity Home service. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors looking to capitalize on the growing demand for home security technology.

ADT or Comcast?

When comparing ADT and Comcast, 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 Comcast.

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 Comcast has a dividend yield of 2.76%. 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, Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%.

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 Comcast's P/E ratio at 11.63. 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 Comcast's P/B ratio is 1.99.

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 Comcast's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and Comcast's ROE at 17.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.70 for ADT and $60.40 for Comcast. Over the past year, ADT's prices ranged from $5.63 to $8.25, with a yearly change of 46.54%. Comcast's prices fluctuated between $52.84 and $66.80, with a yearly change of 26.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.