Review of ADT (NYSE:ADT) and Vivint Smart Home (NYSE:VVNT)


AD (NYSE: ADTGet a rating) and Vivint Smart Home (NYSE: VVNTGet a rating) are both industrial products companies, but which company is superior? We’ll compare the two companies based on earnings strength, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares the net margins, return on equity, and return on assets of ADT and Vivint Smart Home.

Net margins Return on equity return on assets
ADT -6.43% -6.46% -1.18%
Vivint smart home -20.77% N / A -10.69%

Risk and Volatility

ADT has a beta of 2.09, which means its stock price is 109% more volatile than the S&P 500. Comparatively, Vivint Smart Home has a beta of 0.73, which means its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

90.7% of ADT’s shares are held by institutional investors. Comparatively, 79.5% of Vivint Smart Home shares are held by institutional investors. 1.5% of ADT’s stock is held by insiders of the company. Comparatively, 1.6% of Vivint Smart Home shares are held 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 benefits

This table compares revenue, earnings per share (EPS), and valuation of ADT and Vivint Smart Home.

Gross revenue Price/sales ratio Net revenue 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 revenue than ADT. ADT trades at a lower price-to-earnings ratio than Vivint Smart Home, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a breakdown of recent recommendations for ADT and Vivint Smart Home, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
ADT 0 2 2 0 2.50
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%. Considering Vivint Smart Home’s stronger consensus rating and higher likely upside, analysts clearly believe that Vivint Smart Home is more favorable than ADT.

ADT Company Profile (Get a rating)

ADT Inc. provides security, automation and smart home solutions to consumers and businesses in the United States. It provides a range of fire detection, fire suppression, CCTV and access control systems to residential, commercial and multi-site customers. The company primarily offers monitored security and automation solutions, including installation and monitoring of security and premise automation systems designed to detect intrusion, control access, detect motion, smoke, fire, carbon monoxide, flooding, temperature and other environmental conditions and hazards; and respond to personal emergencies, such as injury, medical emergency or disability. It also provides interactive and smart home solutions that allow customers to use their smartphones, tablets and laptops to arm and disarm their security systems, adjust light or thermostat levels and view videos in time. of their premises; and creates personalized, automated schedules for managing lights, thermostats, appliances, garage doors, cameras, and other connected devices, as well as monitoring and maintenance services. The company offers its products under the names ADT, ADT Pulse, Protection 1, ADT Commercial and Blue by ADT. It operates through a network of approximately 250 sales and service offices, as well as three regional distribution centers, which are supported by 17 multi-purpose sales, customer and field support sites housing its nine monitoring centers. UL listed and four national sales centers. . The company was formerly known as Prime Security Services Parent, Inc. and changed its name to ADT Inc. in September 2017. ADT Inc. was founded in 1874 and is headquartered in Boca Raton, Florida.

Vivint Smart Home Company Profile (Get a rating)

Vivint Smart Home, Inc., together with its subsidiaries, is engaged in the sale, installation, maintenance and monitoring of smart home and security systems primarily in the United States and Canada. The Company’s smart home platform includes cloud-enabled smart home operating systems; AI-driven smart home automation and assistance software; software-enabled smart home devices; and technology services to educate, manage and support the smart home. It also offers other devices including control panel, door and window sensors, security cameras and smoke detectors, door locks, motion detectors, glass break detectors, key fobs, emergency pendants, carbon monoxide detectors, fire, flood and burglary sensors. The company’s solutions allow subscribers to interact with their connected home with voice or a mobile device, including the front door, viewing live and recorded video inside and outside homes ; and controlling thermostats, locks, lights and garage doors, as well as managing the movements of families, friends and visitors. As of March 31, 2021, its smart home platform had approximately 1.9 million subscribers and managed approximately 26 million home devices. It markets its products through direct-to-home and in-house sales channels. Vivint Smart Home, Inc. was founded in 1999 and is headquartered in Provo, Utah.



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