Critical Comparison: ICTS International (OTCMKTS:ICTSF) versus ADT (NYSE:ADT)

ICTS International (OTCMKTS:ICTSF) and ADT (NYSE:ADT) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for ICTS International and ADT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICTS International	0	0	0	0	0.00
ADT	0	4	2	0	2.33

ADT has a consensus price target of $9.38, suggesting a potential upside of 5.99%. Given ADT’s stronger consensus rating and higher probable upside, analysts plainly believe ADT is more favorable than ICTS International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ICTS International	N/A	N/A	N/A
ADT	12.30%	18.58%	4.35%

Institutional and Insider Ownership

87.2% of ADT shares are held by institutional investors. 62.4% of ICTS International shares are held by company insiders. Comparatively, 2.7% of ADT 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.

Volatility and Risk

ICTS International has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, ADT has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Earnings and Valuation

This table compares ICTS International and ADT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICTS International	$483.31 million	0.34	-$4.23 million	N/A	N/A
ADT	$4.90 billion	1.50	$501.05 million	$0.66	13.40

ADT has higher revenue and earnings than ICTS International.

Summary

ADT beats ICTS International on 11 of the 12 factors compared between the two stocks.

About ICTS International

ICTS International N.V. provides airport security and other aviation services, and authentication technology services in the Netherlands, Germany, the United States, Spain, and internationally. It offers aviation security services, including security screening, behavior detection on crowds and queues, perimeter guarding/ patrolling, CCTV surveillance and/or alarm resolution, and vehicle marshalling. It also provides above wing security services, such as security interviewing, behavior detection, and escort of valuables and weapons; and handling services. In addition, it offers below wing services, comprising ramp and door guarding, interior and exterior searches, catering and bag room guarding, and selectee search; cargo security services, which include cargo screening, explosives detection dogs, access control, and vehicle marshalling services; private charter flight and cargo security screening, catering and aircraft Security Screening, aircraft search, and employee screening services; general security services, which comprise security search and screening, access control, perimeter guarding/patrolling, security host and reception, and CCTV surveillance and/or alarm resolution services; and training/consulting/auditing services. Further, it offers aviation security technology, including New Advanced Passenger Screening, an IT-system that enables pre-departure analysis of passenger information, and X-Check and I-Check that supports airline staff, security or filtering agents with customer processing; SaaS for identity verification and fraud prevention from physical and digital ID documents; and non-security services, such as agent services, guard services, queue monitors, aircraft cleaning, janitorial, skycap passengers luggage, wheelchair attendant, baggage handling, cruise line baggage transfer, VIP meet and greet services, equipment for passengers, and shuttle services to airline crews. The company was founded in 1982 and is based in Schiphol, the Netherlands.

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.