Critical Comparison: ADT (NYSE:ADT) vs. American Rebel (NASDAQ:AREB)

ADT (NYSE:ADT) and American Rebel (NASDAQ:AREB) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADT	$5.13 billion	1.03	$595.95 million	$0.66	9.77
American Rebel	$11.42 million	0.06	-$17.60 million	($12,164.80)	0.00

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

Institutional & Insider Ownership

87.2% of ADT shares are owned by institutional investors. Comparatively, 13.6% of American Rebel shares are owned by institutional investors. 2.7% of ADT shares are owned by company insiders. Comparatively, 78.2% of American Rebel shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

ADT has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, American Rebel has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for ADT and American Rebel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADT	1	4	2	0	2.14
American Rebel	1	0	0	0	1.00

ADT presently has a consensus target price of $8.38, suggesting a potential upside of 29.98%. Given ADT’s stronger consensus rating and higher probable upside, equities analysts plainly believe ADT is more favorable than American Rebel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ADT	11.60%	19.16%	4.43%
American Rebel	-402.98%	N/A	-218.57%

Summary

ADT beats American Rebel on 12 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 American Rebel

American Rebel Holdings, Inc. designs and markets branded safes, and personal security and self-defense products. The company's safes are offered in various sizes and shapes for home, office, and personal use, as well as provides vault doors, handgun vaults, and inventory control safes under the American Rebel brand. It also offers accessories, such as back-over and back-under handgun hangers, ballistic shields, safe light kits, mag minders, moisture guards, and rifle rod kits and rods. In addition, the company's personal security and self-defense products include concealed carry backpacks; and concealed carry jackets, vests, and coats, as well as T-shirts for men and women under the American Rebel brand. Further, it offers beer under the American Rebel Light Beer brand. The company markets its products through regional retailers; and specialty safe, sporting goods, hunting, and firearms stores, as well as online through own website and e-commerce platforms. American Rebel Holdings, Inc. was incorporated in 2014 and is based in Nashville, Kansas.