Latch (NASDAQ:LTCH) and ADT (NYSE:ADT) Head-To-Head Analysis

Latch (NASDAQ:LTCH) and ADT (NYSE:ADT) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Latch and ADT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Latch 0 1 2 0 2.67
ADT 1 2 4 0 2.43

Latch presently has a consensus price target of $15.14, indicating a potential upside of 27.15%. ADT has a consensus price target of $11.22, indicating a potential upside of 8.60%. Given Latch’s stronger consensus rating and higher possible upside, research analysts plainly believe Latch is more favorable than ADT.

Insider and Institutional Ownership

44.6% of Latch shares are owned by institutional investors. Comparatively, 88.6% of ADT shares are owned by institutional investors. 1.5% of ADT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Latch N/A N/A -$7.39 million N/A N/A
ADT $5.32 billion 1.59 -$632.19 million ($0.36) -28.69

Latch has higher earnings, but lower revenue than ADT.

Profitability

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

Net Margins Return on Equity Return on Assets
Latch N/A N/A N/A
ADT -7.24% -8.80% -1.63%

Summary

Latch beats ADT on 6 of the 10 factors compared between the two stocks.

Latch Company Profile

Latch, Inc. makes spaces better places to live, work, and visit through a system of software, devices, and services in the United States. Its products include LatchOS for Commercial Office, a commercial solution that would extend smart access, visitor and delivery management, smart device and sensor control, connectivity, and identity and personalization solutions to meet the needs of modern office spaces; Latch Visitor Express, a contactless visitor entry system; The Latch Lens Partner Program that enables access device partners to leverage Latch's software and Latch Lens; LatchID, an identification system that creates a network of users, across spaces, and devices; and Latch C2, a smart access solution for retrofits and new construction. The company is headquartered in New York City, with additional offices in San Francisco and Taipei.

ADT Company Profile

ADT Inc. provides security, automation, and smart home solutions to consumer and business customers in the United States. It provides a range of fire detection, fire suppression, video surveillance, and access control systems to residential, commercial, and multi-site customers. The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies, or incapacitation. It also provides interactive and smart home solutions that allow customers to use their smart phones, tablets, and laptops to arm and disarm their security systems, adjust lighting or thermostat levels, and view real-time video of their premises; and create customized and automated schedules for managing lights, thermostats, appliances, garage doors, cameras, and other connected devices, as well as offers monitoring and maintenance services. The company offers its products under the ADT, ADT Pulse, Protection 1, ADT Commercial, and Blue by ADT names. As of December 31, 2020, it operated through a network of approximately 300 sales and service offices, 9 underwriter laboratories listed monitoring centers, 18 sales and customer and field support locations, 4 national sales call centers, and 3 regional distribution centers. 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.

Receive News & Ratings for Latch Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Latch and related companies with MarketBeat.com's FREE daily email newsletter.