ADT vs SECOM Which Is a Better Investment?

ADT and SECOM are two leading companies in the security industry, both specializing in providing advanced security solutions to residential and commercial customers. While ADT is based in the United States and has a strong presence in North America, SECOM is a Japanese company with a significant market share in Asia. Investors looking to capitalize on the growing demand for security services may consider comparing the performance and financials of ADT and SECOM stocks to make informed investment decisions.

ADT or SECOM?

When comparing ADT and SECOM, 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 SECOM.

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

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 SECOM's P/E ratio at 5.52. 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 1.79 while SECOM's P/B ratio is 0.45.

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 SECOM's is 3.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and SECOM's ROE at 8.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.70 for ADT and $8.53 for SECOM. Over the past year, ADT's prices ranged from $5.63 to $8.25, with a yearly change of 46.54%. SECOM's prices fluctuated between $7.05 and $10.75, with a yearly change of 52.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.