Analyzing NAPCO Security Technologies (NSSC) and ADT Corp (ADT)
ADT Corp (NYSE: ADT) and NAPCO Security Technologies (NASDAQ:NSSC) are both services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitabiliy.
Insider & Institutional Ownership
23.5% of NAPCO Security Technologies shares are held by institutional investors. 37.8% of NAPCO Security Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares ADT Corp and NAPCO Security Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NAPCO Security Technologies||$85.75 million||2.00||$8.06 million||$0.31||29.35|
NAPCO Security Technologies has higher revenue and earnings than ADT Corp.
This is a summary of recent ratings for ADT Corp and NAPCO Security Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NAPCO Security Technologies||0||1||2||0||2.67|
NAPCO Security Technologies has a consensus price target of $8.75, suggesting a potential downside of 3.85%. Given NAPCO Security Technologies’ higher probable upside, analysts plainly believe NAPCO Security Technologies is more favorable than ADT Corp.
This table compares ADT Corp and NAPCO Security Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NAPCO Security Technologies||6.78%||11.09%||8.98%|
NAPCO Security Technologies beats ADT Corp on 8 of the 8 factors compared between the two stocks.
ADT Corp Company Profile
The ADT Corporation (ADT) is a provider of electronic security, interactive home and business automation, and monitoring services for residences and small businesses in the United States and Canada. The Company’s products and services include home and business solutions, and home health services. The Company’s brands include ADT, ADT Pulse and Companion Service. On August 2, 2013, the Company acquired Devcon Security Holdings, Inc. In November 2013, Kastle Systems International announced that it had acquired Mutual Central Alarm Services and Stat-Land Security Systems from ADT Corporation. In July 2014, ADT Corp acquired Reliance Protectron Inc, from Reliance Comfort Limited Partnership, a portfolio company of investment funds managed by Alinda Capital Partners.
NAPCO Security Technologies Company Profile
NAPCO Security Technologies, Inc. is a manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold across the world principally to independent distributors, dealers and installers of security equipment. The Company manufactures and markets various products for alarm systems, which include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. It manufactures a range of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. It also markets peripheral and related equipment manufactured by other companies.
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