Comparing ADT (NYSE:ADT) & Wrap Technologies (NASDAQ:WRAP)

Wrap Technologies (NASDAQ:WRAP) and ADT (NYSE:ADT) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Wrap Technologies has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, ADT has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Wrap Technologies and ADT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.50 million	28.64	-$5.88 million	($0.30)	-8.33
ADT	$4.90 billion	1.36	$501.05 million	$0.69	11.82

ADT has higher revenue and earnings than Wrap Technologies. Wrap Technologies is trading at a lower price-to-earnings ratio than ADT, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-300.11%	-194.93%	-83.58%
ADT	12.52%	18.96%	4.38%

Insider and Institutional Ownership

8.8% of Wrap Technologies shares are held by institutional investors. Comparatively, 87.2% of ADT shares are held by institutional investors. 33.3% of Wrap Technologies shares are held by insiders. Comparatively, 2.7% of ADT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wrap Technologies and ADT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
ADT	0	5	1	0	2.17

ADT has a consensus price target of $9.38, suggesting a potential upside of 14.97%. Given ADT’s stronger consensus rating and higher possible upside, analysts plainly believe ADT is more favorable than Wrap Technologies.

Summary

ADT beats Wrap Technologies on 11 of the 14 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.

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.