Reviewing ADT (NYSE:ADT) & Vivint Smart Home (NYSE:VVNT) – Defense World
ADT (NYSE:ADT – Get Rating) and Vivint Smart Home (NYSE:VVNT – Get Rating) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
This table compares ADT and Vivint Smart Home’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vivint Smart Home||-20.77%||N/A||-10.69%|
Risk & Volatility
ADT has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Vivint Smart Home has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Insider and Institutional Ownership
90.7% of ADT shares are owned by institutional investors. Comparatively, 79.5% of Vivint Smart Home shares are owned by institutional investors. 1.5% of ADT shares are owned by company insiders. Comparatively, 1.6% of Vivint Smart Home shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares ADT and Vivint Smart Home’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADT||$5.31 billion||1.14||-$340.82 million||($0.41)||-18.00|
|Vivint Smart Home||$1.48 billion||0.75||-$305.55 million||($1.72)||-3.11|
Vivint Smart Home has lower revenue, but higher earnings than ADT. ADT is trading at a lower price-to-earnings ratio than Vivint Smart Home, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for ADT and Vivint Smart Home, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vivint Smart Home||0||2||3||0||2.60|
ADT currently has a consensus target price of $9.81, indicating a potential upside of 32.96%. Vivint Smart Home has a consensus target price of $16.40, indicating a potential upside of 206.54%. Given Vivint Smart Home’s stronger consensus rating and higher probable upside, analysts clearly believe Vivint Smart Home is more favorable than ADT.
ADT Company Profile (Get Rating)
ADT Inc. provides security, automation, and smart home solutions to consumer and business customers in the United States. It provides a range of fire detection, fire suppression, video surveillance, and access control systems …….