Chubb vs ADT

Chubb Limited and ADT Inc. are two well-known companies in the security industry, operating in different sectors of the market. Chubb specializes in providing property and casualty insurance, while ADT focuses on home and business security systems. Both companies have seen growth in recent years but have faced challenges such as increasing competition and changes in consumer preferences. Investors looking to add security stocks to their portfolios may want to consider the strengths and weaknesses of Chubb vs ADT before making a decision.

Chubb or ADT?

When comparing Chubb 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 Chubb 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. Chubb has a dividend yield of 1.55%, while ADT has a dividend yield of 3.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.45%. 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 Chubb P/E ratio at 11.97 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. Chubb P/B ratio is 1.91 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, Chubb has seen a 5-year revenue growth of 0.72%, while ADT's is -0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chubb's ROE at 16.65% and ADT's ROE at 18.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $287.12 for Chubb and $6.83 for ADT. Over the past year, Chubb's prices ranged from $205.64 to $294.18, with a yearly change of 43.06%. 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.