Alarm.com vs ADT

Alarm.com and ADT are two leading companies in the home security industry, each offering a range of products and services to help protect homes and businesses. Alarm.com focuses on providing smart home security solutions, while ADT is a well-established provider of traditional security services. Investors interested in the home security sector may find themselves comparing the two companies' stocks. This comparison will look at factors such as revenue growth, profitability, and market share to determine which stock may be the better investment option.

Alarm.com or ADT?

When comparing Alarm.com and ADT, 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 Alarm.com and ADT.

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. Alarm.com has a dividend yield of -%, while ADT has a dividend yield of 3.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alarm.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ADT reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.75%.

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 Alarm.com P/E ratio at 24.92 and ADT's P/E ratio at 9.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alarm.com P/B ratio is 4.17 while ADT's P/B ratio is 1.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alarm.com has seen a 5-year revenue growth of 0.83%, while ADT's is -0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alarm.com's ROE at 15.82% and ADT's ROE at 18.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.60 for Alarm.com and $6.83 for ADT. Over the past year, Alarm.com's prices ranged from $49.70 to $77.29, with a yearly change of 55.52%. ADT's prices fluctuated between $5.53 and $7.92, with a yearly change of 43.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.