Digital Ally (NASDAQ: DGLY) and ADT (NYSE:ADT) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
This table compares Digital Ally and ADT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
3.4% of Digital Ally shares are owned by institutional investors. 19.0% of Digital Ally shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Digital Ally and ADT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digital Ally||$16.58 million||0.93||-$12.71 million||($2.13)||-1.03|
|ADT||$2.95 billion||2.94||-$536.58 million||($0.50)||-23.16|
Digital Ally has higher earnings, but lower revenue than ADT. 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.
This is a summary of current ratings for Digital Ally and ADT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digital Ally currently has a consensus price target of $6.00, indicating a potential upside of 172.73%. ADT has a consensus price target of $16.25, indicating a potential upside of 40.33%. Given Digital Ally’s stronger consensus rating and higher probable upside, research analysts plainly believe Digital Ally is more favorable than ADT.
ADT beats Digital Ally on 7 of the 13 factors compared between the two stocks.
About Digital Ally
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.
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.
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