Comparing Ascent Capital Group (ASCMA) and ADT (NYSE:ADT)

ADT (NYSE: ADT) and Ascent Capital Group (NASDAQ:ASCMA) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares ADT and Ascent Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ADT N/A N/A N/A
Ascent Capital Group -19.68% -56.10% -5.20%

Analyst Ratings

This is a breakdown of recent ratings and target prices for ADT and Ascent Capital Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ADT 0 1 7 0 2.88
Ascent Capital Group 0 2 1 0 2.33

ADT currently has a consensus price target of $16.25, suggesting a potential upside of 36.10%. Ascent Capital Group has a consensus price target of $14.33, suggesting a potential upside of 126.08%. Given Ascent Capital Group’s higher probable upside, analysts plainly believe Ascent Capital Group is more favorable than ADT.

Valuation and Earnings

This table compares ADT and Ascent Capital Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ADT $2.95 billion 3.03 -$536.58 million N/A N/A
Ascent Capital Group $570.37 million 0.14 -$91.24 million ($9.03) -0.70

Ascent Capital Group has lower revenue, but higher earnings than ADT.

Institutional and Insider Ownership

80.4% of Ascent Capital Group shares are owned by institutional investors. 9.6% of Ascent Capital Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

ADT beats Ascent Capital Group on 7 of the 11 factors compared between the two stocks.

ADT Company Profile

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.

Ascent Capital Group Company Profile

Ascent Capital Group, Inc. is a holding company. The Company’s subsidiaries include Monitronics International, Inc. (MONI) and LiveWatch Security, LLC (LiveWatch). The Company’s segments include MONI, LiveWatch and Other Activities. The MONI segment is primarily engaged in the business of providing security alarm monitoring services: monitoring signals arising from burglaries, fires, medical alerts and other events through security systems at subscribers’ premises, as well as providing customer service and technical support. LiveWatch is a do-it-yourself home security provider offering professionally monitored security services through a direct-to-consumer sales channel. LiveWatch offers a differentiated go-to-market strategy through direct response television, Internet and radio advertising. When a customer initiates the process to obtain monitoring services, LiveWatch pre-configures the alarm monitoring system based on customer specifications.

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