Head-To-Head Comparison: ADT (NYSE:ADT) and Avolta (OTCMKTS:DUFRY)

Avolta (OTCMKTS:DUFRY) and ADT (NYSE:ADT) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avolta	N/A	N/A	N/A
ADT	11.85%	18.99%	4.40%

Earnings and Valuation

This table compares Avolta and ADT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avolta	$16.60 billion	0.47	$240.19 million	N/A	N/A
ADT	$5.13 billion	1.07	$595.95 million	$0.71	10.62

ADT has lower revenue, but higher earnings than Avolta.

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Avolta and ADT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avolta	0	1	0	0	2.00
ADT	1	4	2	0	2.14

ADT has a consensus target price of $8.23, suggesting a potential upside of 9.15%. Given ADT’s stronger consensus rating and higher possible upside, analysts clearly believe ADT is more favorable than Avolta.

Volatility & Risk

Avolta has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, ADT has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

ADT beats Avolta on 11 of the 12 factors compared between the two stocks.

About Avolta

Avolta AG operates as a travel retailer. The company’s retail brands include general travel retail shops under the Dufry, World Duty Free, Nuance, Hellenic Duty Free, Zurich Duty-Free or Stockholm Duty-Free, Autogrill, and HMSHost brands; Dufry shopping stores; brand boutiques; convenience stores primarily under the Hudson brand; and specialized shops and theme stores. It offers perfumes and cosmetics, food and confectionery, wines and spirits, watches and jewelry, fashion and leather, tobacco goods, souvenirs, electronics, soft drinks, packaged food, travel accessories, personal items, sunglasses, destination, and other products, as well as newspapers, magazines, and books. It operates duty-free and duty-paid shops located at airports, border, downtown and hotel shops, railway stations and other, cruise liners and ferries, seaports, and motorways in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company was formerly known as Dufry AG and changed its name to Avolta AG in November 2023. Avolta AG was incorporated in 1865 and is headquartered in Basel, Switzerland.

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.