ADT (NYSE:ADT) and TPI Composites (NASDAQ:TPIC) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Institutional & Insider Ownership
95.0% of ADT shares are held by institutional investors. Comparatively, 76.8% of TPI Composites shares are held by institutional investors. 1.4% of ADT shares are held by insiders. Comparatively, 18.3% of TPI Composites shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares ADT and TPI Composites' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ADT | $5.13 billion | 1.44 | $-424,150,000.00 | ($0.09) | -105.89 |
| TPI Composites | $1.44 billion | 1.32 | $-15,710,000.00 | ($0.29) | -178.00 |
TPI Composites has lower revenue, but higher earnings than ADT. TPI Composites is trading at a lower price-to-earnings ratio than ADT, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ADT has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, TPI Composites has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Profitability
This table compares ADT and TPI Composites' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ADT | -11.17% | -6.79% | -1.26% |
| TPI Composites | -1.54% | 7.60% | 1.48% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for ADT and TPI Composites, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ADT | 1 | 3 | 6 | 0 | 2.50 |
| TPI Composites | 0 | 3 | 8 | 0 | 2.73 |
ADT presently has a consensus target price of $10.6136, suggesting a potential upside of 11.37%. TPI Composites has a consensus target price of $58.90, suggesting a potential upside of 14.10%. Given TPI Composites' stronger consensus rating and higher possible upside, analysts plainly believe TPI Composites is more favorable than ADT.
Summary
TPI Composites beats ADT on 8 of the 14 factors compared between the two stocks.
