Head to Head Survey: ADT (NYSE:ADT) vs. Life360 (NASDAQ:LIF)

ADT (NYSE:ADT) and Life360 (NASDAQ:LIF) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

ADT has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Life360 has a beta of 3.9, meaning that its stock price is 290% more volatile than the S&P 500.

Insider and Institutional Ownership

87.2% of ADT shares are held by institutional investors. Comparatively, 20.0% of Life360 shares are held by institutional investors. 2.7% of ADT shares are held by insiders. Comparatively, 8.0% of Life360 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ADT and Life360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADT	11.60%	19.16%	4.43%
Life360	30.82%	7.81%	4.44%

Analyst Ratings

This is a breakdown of recent ratings for ADT and Life360, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADT	1	4	2	0	2.14
Life360	0	5	5	0	2.50

ADT currently has a consensus target price of $8.38, indicating a potential upside of 19.80%. Life360 has a consensus target price of $75.16, indicating a potential upside of 76.48%. Given Life360’s stronger consensus rating and higher probable upside, analysts plainly believe Life360 is more favorable than ADT.

Earnings & Valuation

This table compares ADT and Life360″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADT	$5.13 billion	1.12	$595.95 million	$0.66	10.60
Life360	$489.48 million	6.98	$150.83 million	$1.75	24.34

ADT has higher revenue and earnings than Life360. ADT is trading at a lower price-to-earnings ratio than Life360, indicating that it is currently the more affordable of the two stocks.

Summary

Life360 beats ADT on 10 of the 14 factors compared between the two stocks.

About ADT

ADT Inc. provides security, interactive, and smart home solutions to residential and small business customers in the United States. It operates through two segments, Consumer and Small Business, and Solar. The company provides burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems. It primarily offers security designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal medical emergencies, such as injuries or unanticipated falls. The company also provides automation and smart home solutions that allow customers to use their smart phones, smart phone application, or touchscreen panels in their homes to arm and disarm their security systems; record and view real-time video; and creates customized and automated schedules for connected devices; programs systems to react to defined events; integrates system with third-party connected devices, such as cameras, lights, thermostats, appliances, and garage doors, as well as offers monitoring and maintenance services. In addition, the company offers energy storage solutions, energy efficiency upgrades, and roofing services. It offers its products under the ADT, ADT Pulse, ADT+, and ADT Commercial brand names. 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.

About Life360

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.