Head-To-Head Contrast: Iveda Solutions (OTCMKTS:IVDA) vs. ADT (NYSE:ADT)

ADT (NYSE:ADT) and Iveda Solutions (OTCMKTS:IVDA) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Earnings and Valuation

This table compares ADT and Iveda Solutions’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADT	$4.98 billion	1.24	$463.01 million	$0.50	13.41
Iveda Solutions	$7.59 million	1.90	-$3.35 million	($0.20)	-4.50

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

Risk and Volatility

ADT has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Iveda Solutions has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

87.2% of ADT shares are owned by institutional investors. Comparatively, 2.2% of Iveda Solutions shares are owned by institutional investors. 2.5% of ADT shares are owned by company insiders. Comparatively, 10.4% of Iveda Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares ADT and Iveda Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADT	8.69%	14.85%	2.96%
Iveda Solutions	-35.70%	-36.68%	-27.45%

Analyst Recommendations

This is a summary of current ratings and target prices for ADT and Iveda Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADT	0	1	1	0	2.50
Iveda Solutions	0	0	1	0	3.00

ADT currently has a consensus target price of $9.10, suggesting a potential upside of 35.72%. Iveda Solutions has a consensus target price of $3.00, suggesting a potential upside of 233.70%. Given Iveda Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Iveda Solutions is more favorable than ADT.

Summary

ADT beats Iveda Solutions on 9 of the 13 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 Iveda Solutions

Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States, Egypt, and Taiwan. The company offers IvedaAI, a deep-learning video analytics software; IvedaPinpoint, a solution that manages Bluetooth trackers and sensors, and displays them on a map for exact location; and Sentir Video, a video surveillance solution for various kinds of applications. It also provides Cerebro IoT Platform, a software technology platform that integrates a multitude of disparate systems for central access and management of applications, subsystems, and devices; and IvedaSPS, a smart power solution utilizing in Cerebro IoT platform. In addition, the company offers Utilus smart pole solution that consists of power and Internet with a communication network for the access and management of sensors and devices. It serves airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and safe city projects. Iveda Solutions, Inc. was founded in 2003 and is based in Mesa, Arizona.