Head-To-Head Review: Allied Security Innovations (OTCMKTS:ADSV) & ADT (NYSE:ADT)

ADT (NYSE:ADT) and Allied Security Innovations (OTCMKTS:ADSV) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Volatility and Risk

ADT has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Allied Security Innovations has a beta of -3.06, meaning that its share price is 406% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for ADT and Allied Security Innovations, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADT	1	4	1	0	2.00
Allied Security Innovations	0	0	0	0	0.00

ADT presently has a consensus target price of $9.25, suggesting a potential upside of 13.57%. Given ADT’s stronger consensus rating and higher possible upside, analysts plainly believe ADT is more favorable than Allied Security Innovations.

Earnings & Valuation

This table compares ADT and Allied Security Innovations”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADT	$4.90 billion	1.36	$501.05 million	$0.69	11.80
Allied Security Innovations	N/A	N/A	N/A	N/A	N/A

ADT has higher revenue and earnings than Allied Security Innovations.

Profitability

This table compares ADT and Allied Security Innovations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADT	12.52%	18.96%	4.38%
Allied Security Innovations	N/A	N/A	N/A

Insider & Institutional Ownership

87.2% of ADT shares are held by institutional investors. 2.7% of ADT shares are held by company insiders. Comparatively, 22.1% of Allied Security Innovations shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

ADT beats Allied Security Innovations on 9 of the 10 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 Allied Security Innovations

Allied Security Innovations, Inc., through its subsidiary, CGM Applied Security Technologies, Inc., manufactures and distributes indicative and barrier security seals, security tapes, and related packaging security systems in the United States and internationally. It also provides protective security products for palletized cargo; and physical security systems for tractors, trailers, and containers, as well as various specialized authentication products. The company's principal products include tapes, self-wound security tapes, void labels and void tapes for bag closure, SUPERSEALS, custom coated products, conductive inks and membrane switch components, electro-magnetic asset protection systems, locks, sentry sensors, and other related items. It provides its products for use in aircraft and truck seals, fiber and steel drum seals, motor vehicle inspection seals, pharmaceutical packaging, box or container closure seals, cash bag components, computer seals, validation devices, general security products, and law enforcement agencies. The company also develops, assembles, markets, and installs computer systems, which capture video, digitally captured images, and scanned images; digitizes the image; links the digitized images to text/data; and stores the image and text on a computer database, which allows for transmitting the image and text by computer or telecommunication links to remote locations. In addition, it offers maintenance and support, and related services; and software. The company serves producers of various items, such as perfumes, computers, silicon chips, jewelry, and cash and negotiable documents. The company was formerly known as Digital Descriptor Systems, Inc. and changed its name Allied Security Innovations, Inc. in December 2006. Allied Security Innovations, Inc. was founded in 1986 and is based in West Palm Beach, Florida.