Brady (NYSE:BRC) vs. ADT (NYSE:ADT) Head-To-Head Comparison

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

Insider & Institutional Ownership

76.3% of Brady shares are owned by institutional investors. Comparatively, 87.2% of ADT shares are owned by institutional investors. 15.6% of Brady shares are owned by insiders. Comparatively, 2.7% of ADT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Brady pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. ADT pays an annual dividend of $0.22 per share and has a dividend yield of 2.6%. Brady pays out 24.4% of its earnings in the form of a dividend. ADT pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brady has increased its dividend for 39 consecutive years and ADT has increased its dividend for 1 consecutive years.

Risk and Volatility

Brady has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, ADT has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Brady and ADT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brady	0	0	0	1	4.00
ADT	0	3	2	1	2.67

ADT has a consensus price target of $9.34, indicating a potential upside of 8.60%. Given ADT’s higher possible upside, analysts clearly believe ADT is more favorable than Brady.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brady	12.50%	19.29%	13.31%
ADT	12.30%	18.58%	4.35%

Valuation & Earnings

This table compares Brady and ADT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brady	$1.51 billion	2.46	$189.26 million	$3.93	20.00
ADT	$4.90 billion	1.46	$501.05 million	$0.66	13.03

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

Summary

Brady beats ADT on 10 of the 17 factors compared between the two stocks.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The company offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification. It also provides name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; and wristbands, labels, printing systems, and other products for tracking and improving the safety of patients. In addition, the company offers workplace safety, identification, and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; facility safety and personal protection equipment; first-aid products; and other compliance products for process, government, education, construction, and utilities industries. Further, it provides stock and custom identification products; and sells related resale products. The company serves industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and other industries through distributors, direct sales force, and digital channels. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.

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.