ADT (NYSE:ADT – Get Free Report) and Digimarc (NASDAQ:DMRC – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Institutional and Insider Ownership
87.2% of ADT shares are held by institutional investors. Comparatively, 66.9% of Digimarc shares are held by institutional investors. 3.0% of ADT shares are held by insiders. Comparatively, 26.0% of Digimarc shares are held 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.
Profitability
This table compares ADT and Digimarc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ADT | 12.12% | 19.23% | 4.50% |
| Digimarc | -85.75% | -21.81% | -16.23% |
Risk and Volatility
Analyst Ratings
This is a summary of current ratings and target prices for ADT and Digimarc, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ADT | 1 | 3 | 2 | 0 | 2.17 |
| Digimarc | 1 | 0 | 1 | 0 | 2.00 |
ADT currently has a consensus price target of $8.08, indicating a potential upside of 21.41%. Digimarc has a consensus price target of $15.00, indicating a potential upside of 3.73%. Given ADT’s stronger consensus rating and higher probable upside, research analysts plainly believe ADT is more favorable than Digimarc.
Valuation & Earnings
This table compares ADT and Digimarc”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ADT | $5.13 billion | 1.03 | $595.95 million | $0.70 | 9.51 |
| Digimarc | $33.91 million | 9.48 | -$32.31 million | ($1.27) | -11.39 |
ADT has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than ADT, indicating that it is currently the more affordable of the two stocks.
Summary
ADT beats Digimarc on 11 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 Digimarc
Digimarc Corporation, together with its subsidiaries, provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc Validate protects, a cloud-based record of product authentication information; Digimarc Engage, an interactive communications channel connecting brands and consumers; and Digimarc Recycle. Its solutions are used in various application solutions, such as sorting of consumer-packaged goods in recycling streams. The company offers its solutions through its sales personnel and business partners. Digimarc Corporation was incorporated in 2008 and is based in Beaverton, Oregon.
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