ADT (NYSE:ADT) versus 17 Education & Technology Group (NYSE:YQ) Financial Analysis

17 Education & Technology Group (NYSE:YQ) and ADT (NYSE:ADT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Profitability

This table compares 17 Education & Technology Group and ADT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
17 Education & Technology Group	-113.55%	-38.90%	-28.18%
ADT	11.85%	18.99%	4.40%

Earnings and Valuation

This table compares 17 Education & Technology Group and ADT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
17 Education & Technology Group	$248.49 million	0.16	-$43.92 million	($1.28)	-2.88
ADT	$5.13 billion	0.88	$595.95 million	$0.71	8.74

ADT has higher revenue and earnings than 17 Education & Technology Group. 17 Education & Technology Group is trading at a lower price-to-earnings ratio than ADT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for 17 Education & Technology Group and ADT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
17 Education & Technology Group	0	1	1	0	2.50
ADT	1	4	2	0	2.14

ADT has a consensus target price of $8.23, suggesting a potential upside of 32.63%. Given ADT’s higher possible upside, analysts clearly believe ADT is more favorable than 17 Education & Technology Group.

Insider & Institutional Ownership

3.5% of 17 Education & Technology Group shares are held by institutional investors. Comparatively, 87.2% of ADT shares are held by institutional investors. 23.1% of 17 Education & Technology Group shares are held by company insiders. Comparatively, 3.0% of ADT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

17 Education & Technology Group 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 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

ADT beats 17 Education & Technology Group on 12 of the 14 factors compared between the two stocks.

About 17 Education & Technology Group

17 Education & Technology Group, Inc. engages in the provision of educational technology solutions. Its in-school plus after-school integrated model delivers data-driven teaching, learning and assessment products to teachers, students and parents. The firm offers online K-12 large-class after-school tutoring services that complement students’ in-school learning. The company was founded by Jia Wei Gan and Bing Yuan on October 30, 2012 and is headquartered Beijing, China.

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.