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

Institutional & Insider Ownership

3.9% of Digital Ally shares are held by institutional investors. 1.2% of ADT shares are held by insiders. Comparatively, 19.0% of Digital Ally shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares ADT and Digital Ally’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ADT N/A N/A N/A ($0.50) -24.30
Digital Ally $16.58 million 0.88 -$12.71 million ($2.12) -0.99

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

Profitability

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

Net Margins Return on Equity Return on Assets
ADT N/A N/A N/A
Digital Ally -80.08% -195.04% -64.01%

Analyst Recommendations

This is a summary of recent recommendations for ADT and Digital Ally, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ADT 0 1 7 0 2.88
Digital Ally 0 0 2 0 3.00

ADT currently has a consensus price target of $16.25, indicating a potential upside of 33.74%. Digital Ally has a consensus price target of $6.00, indicating a potential upside of 185.73%. Given Digital Ally’s stronger consensus rating and higher probable upside, analysts plainly believe Digital Ally is more favorable than ADT.

Summary

Digital Ally beats ADT on 6 of the 11 factors compared between the two stocks.

ADT Company Profile

ADT Inc. is a provider of monitored security, interactive home and business automation and related monitoring services in the United States and Canada. The Company offers a range of products home security systems, home automation, security cameras, fire, home and safety, and monitoring services. It also offers residential, commercial, and multi-site customers a comprehensive set of burglary, video, access control, fire and smoke alarm, and medical alert solutions. Its 24/7 monitoring capabilities are enabled by 12 monitoring centers.

Digital Ally Company Profile

Digital Ally, Inc. produces digital video imaging and storage products for use in law enforcement, security and commercial applications. The Company’s products include in-car digital video/audio recorder contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a weather-resistant mobile digital video recording system for use on motorcycles, all-terrain vehicles (ATVs) and boats; a miniature digital video system designed to be worn on an individual’s body, and a hand-held laser speed detection device that it offers primarily to law enforcement agencies. The Company sells its products to law enforcement agencies and other security organizations, consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally.

Receive News & Ratings for ADT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ADT and related companies with MarketBeat.com's FREE daily email newsletter.