ADT (NYSE:ADT) & Vivint Smart Home (NYSE:VVNT) Financial Contrast

ADT (NYSE:ADTGet Rating) and Vivint Smart Home (NYSE:VVNTGet Rating) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ADT and Vivint Smart Home, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ADT 0 2 2 0 2.50
Vivint Smart Home 0 2 3 0 2.60

ADT presently has a consensus target price of $9.81, indicating a potential upside of 38.20%. Vivint Smart Home has a consensus target price of $16.40, indicating a potential upside of 205.97%. Given Vivint Smart Home’s stronger consensus rating and higher probable upside, analysts clearly believe Vivint Smart Home is more favorable than ADT.

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 1.10 -$340.82 million ($0.41) -17.32
Vivint Smart Home $1.48 billion 0.76 -$305.55 million ($1.72) -3.12

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.

Institutional & Insider 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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
ADT -6.43% -6.46% -1.18%
Vivint Smart Home -20.77% N/A -10.69%

Volatility & Risk

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

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 to residential, commercial, and multi-site customers. The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies, or incapacitation. It also provides interactive and smart home solutions that allow customers to use their smart phones, tablets, and laptops to arm and disarm their security systems, adjust lighting or thermostat levels, and view real-time video of their premises; and creates customized and automated schedules for managing lights, thermostats, appliances, garage doors, cameras, and other connected devices, as well as offers monitoring and maintenance services. The company offers its products under the ADT, ADT Pulse, Protection 1, ADT Commercial, and Blue by ADT names. 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-use sales, customer, and field support locations housing its nine UL-listed monitoring centers 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 Rating)

Vivint Smart Home, Inc., together with its subsidiaries, engages in the sale, installation, servicing, 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 tech-enabled 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 alarms, door locks, motion sensors, glass break detectors, key fobs, emergency pendants, carbon monoxide detectors, fire, flood, and burglary sensors. The company's solutions enable subscribers to interact their connected home with voice or mobile device, including front door, viewing live and recorded video inside and outside homes; and control thermostats, locks, lights, and garage doors, as well as managing movement 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 in-home devices. It markets its products through direct-to-home and inside sales channels. Vivint Smart Home, Inc. was founded in 1999 and is headquartered in Provo, Utah.

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