IDT vs ADT Which Is More Profitable?

IDT Corporation (IDT) and ADT Inc. (ADT) are two prominent companies in the telecommunications and home security industries respectively. IDT operates in various segments, including telecom, payment services, and energy, while ADT specializes in providing home security solutions to residential and commercial customers. Both companies have distinct business models and target markets, making them appealing to different types of investors. Understanding the strengths and weaknesses of each stock is crucial for making informed investment decisions in these companies.

IDT or ADT?

When comparing IDT 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 IDT 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. IDT has a dividend yield of 0.39%, while ADT has a dividend yield of 3.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.93%. 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 IDT P/E ratio at 20.21 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. IDT P/B ratio is 5.29 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, IDT has seen a 5-year revenue growth of -0.23%, while ADT's is -0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDT's ROE at 29.55% and ADT's ROE at 23.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $49.80 for IDT and $7.70 for ADT. Over the past year, IDT's prices ranged from $27.09 to $51.42, with a yearly change of 89.83%. 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.