ADT vs IDT Which Is Stronger?

ADT Inc. and IDT Corporation are two companies in the telecommunications industry that have gained significant attention from investors. ADT specializes in home security systems and monitoring services, while IDT offers a range of telecommunications and payment services. Both companies have experienced fluctuations in their stock prices, with ADT seeing strong growth in recent years, while IDT has faced challenges in competing with larger telecommunications companies. Investors should carefully consider their investment goals and risk tolerance when evaluating these stocks.

ADT or IDT?

When comparing ADT and IDT, 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 IDT.

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 2.7%, while IDT has a dividend yield of 0.29%. 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, IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.13%.

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 7.55 and IDT's P/E ratio at 17.52. 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 1.72 while IDT's P/B ratio is 4.98.

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 IDT's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and IDT's ROE at 31.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.34 for ADT and $51.32 for IDT. Over the past year, ADT's prices ranged from $6.02 to $8.25, with a yearly change of 37.04%. IDT's prices fluctuated between $31.20 and $58.77, with a yearly change of 88.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.