ADT vs Securitas Which Outperforms?

ADT and Securitas are two leading companies in the security industry, offering a range of services including alarm monitoring, surveillance, and guarding. Both companies have seen steady growth in recent years, with ADT focusing primarily on residential security and Securitas providing a wide range of security solutions for businesses. Investors looking to capitalize on the growing demand for security services may consider investing in either ADT or Securitas stocks, each offering unique opportunities for growth and profit potential.

ADT or Securitas?

When comparing ADT and Securitas, 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 Securitas.

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 Securitas has a dividend yield of 1.25%. 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, Securitas reports a 5-year dividend growth of 224.00% year and a payout ratio of 135.99%.

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 Securitas's P/E ratio at 52.57. 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 Securitas's P/B ratio is 2.06.

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 Securitas's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and Securitas's ROE at 3.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.70 for ADT and $10.50 for Securitas. Over the past year, ADT's prices ranged from $5.63 to $8.25, with a yearly change of 46.54%. Securitas's prices fluctuated between $8.15 and $12.85, with a yearly change of 57.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.