ADT (NYSE:ADT) & Rectitude (NASDAQ:RECT) Financial Survey

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

Valuation & Earnings

This table compares Rectitude and ADT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$32.57 million	0.59	$1.66 million	N/A	N/A
ADT	$5.13 billion	1.00	$595.95 million	$0.70	9.99

ADT has higher revenue and earnings than Rectitude.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
ADT	1	3	2	0	2.17

ADT has a consensus price target of $8.08, indicating a potential upside of 15.51%. Given ADT’s stronger consensus rating and higher possible upside, analysts plainly believe ADT is more favorable than Rectitude.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
ADT	12.12%	19.23%	4.50%

Volatility & Risk

Rectitude has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, ADT has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

87.2% of ADT shares are held by institutional investors. 3.0% of ADT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

ADT beats Rectitude on 11 of the 11 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

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.