ADT vs Matson Which Is a Smarter Choice?

ADT and Matson are two companies in the security and shipping industries, respectively. ADT provides security services such as alarm monitoring and home automation, while Matson is a transportation company specializing in shipping goods across the Pacific Ocean. Both companies are publicly traded on the stock market and have seen fluctuations in their stock prices over the years. Investors may need to consider factors such as industry trends, financial performance, and potential risks before deciding to invest in either ADT or Matson stocks.

ADT or Matson?

When comparing ADT and Matson, 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 Matson.

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 2.73%, while Matson has a dividend yield of 0.9%. 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, Matson reports a 5-year dividend growth of 8.97% year and a payout ratio of 10.88%.

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 7.48 and Matson's P/E ratio at 11.87. 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 1.70 while Matson'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 Matson's is 0.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and Matson's ROE at 16.89%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.27 for ADT and $143.07 for Matson. Over the past year, ADT's prices ranged from $6.02 to $8.25, with a yearly change of 37.04%. Matson's prices fluctuated between $94.58 and $169.12, with a yearly change of 78.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.