Matson vs ADT Which Is More Favorable?

Matson and ADT are two companies in completely different industries. Matson is a transportation and logistics company known for its shipping services, while ADT is a provider of security systems and monitoring solutions. Despite their differences, both companies are publicly traded and their stocks are subject to market trends and investor sentiment. In this comparison, we will explore the performance and potential investment opportunities of Matson versus ADT stocks.

Matson or ADT?

When comparing Matson 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 Matson 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. Matson has a dividend yield of 0.92%, while ADT has a dividend yield of 2.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Matson reports a 5-year dividend growth of 8.97% year and a payout ratio of 10.88%. 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 Matson P/E ratio at 11.65 and ADT's P/E ratio at 7.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Matson P/B ratio is 1.87 while ADT's P/B ratio is 1.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Matson has seen a 5-year revenue growth of 0.68%, while ADT's is -0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Matson's ROE at 16.89% and ADT's ROE at 23.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $143.66 for Matson and $7.34 for ADT. Over the past year, Matson's prices ranged from $94.58 to $169.12, with a yearly change of 78.81%. ADT's prices fluctuated between $6.02 and $8.25, with a yearly change of 37.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.