Comcast vs ADT Which Is More Attractive?

Comcast and ADT are two prominent companies in the stock market that operate in different sectors. Comcast is a leading telecommunications and media conglomerate, while ADT specializes in home security services. Both companies have experienced fluctuations in their stock prices due to various factors such as market competition, customer demand, and economic conditions. Investors often weigh the potential risks and rewards of investing in these stocks to determine which one may be a more lucrative option for their portfolio.

Comcast or ADT?

When comparing Comcast 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 Comcast 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. Comcast has a dividend yield of 2.76%, while ADT has a dividend yield of 3.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%. On the other hand, ADT reports a 5-year dividend growth of 0.00% year and a payout ratio of 18.54%.

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 Comcast P/E ratio at 11.63 and ADT's P/E ratio at 7.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Comcast P/B ratio is 1.99 while ADT's P/B ratio is 1.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Comcast has seen a 5-year revenue growth of 0.41%, while ADT's is -0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 17.56% and ADT's ROE at 23.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.40 for Comcast and $7.70 for ADT. Over the past year, Comcast's prices ranged from $52.84 to $66.80, with a yearly change of 26.41%. ADT's prices fluctuated between $5.63 and $8.25, with a yearly change of 46.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.