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DirectView Holdings (DIRV) Versus ADT Security Services (NYSE: ADT) And SBA Communications (NASDAQ: SBAC)

Millennial Investor News



The global video surveillance market is expected to grow at a compounded annual growth rate of 13.1% between 2018 and 2023 and this is attributed to the increasing public security and safety concerns, a rising crime rate as well as a growing number of terrorist attacks. Across the globe the fastest-growing region with regards to video surveillance services and products will be Asia Pacific. This is because the region is witnessing heavy investments that are being made in improving existing infrastructure as well as building new ones. The market is especially expected to grow significantly in China and India, currently the two most populous countries in the world.

Major players

In the United States some of the major players in the video surveillance market include DirectView Holdings (DIRV), SBA Communications (NASDAQ: SBAC) and ADT Security Services (NYSE: ADT). Among the three firms only SBA Communications recorded a profit in the most recent fiscal results. DirectView Holdings registered net income amounting to -$1.55 million while ADT Security Services saw a net loss amounting to $157 million and this was higher than last year’s net loss of $141 million. SBA Communications on the other hand registered a profit of $103.65 million.

With regards to the kind of ownership that the companies have, SBA Communications has the majority owners being institutional investors as they comprise 92.5% of the shareholders. The percentage of institutional investors in DirectView Holdings on the other hand is only 5.3%. Typically when there is a pronounced institutional ownership in a firm it is evidence that big money managers, endowments and hedge funds are of the view that the stock of the particular company will perform better than the market in the long term.

Gross revenue

During the fiscal year that ended last year in December, SBA Communications generated gross revenue amounting to $1.73 billion. DirectView Holdings on the other hand saw its revenue reach a figure of $2.9 million, an increase of 531%. This was largely driven by the acquisition of ApexCCTV and Virtual Surveillance, two video surveillance and security firms which are based in Texas.

“We are pleased to have achieved record revenue and gross profit in 2017 as well as a significant improvement in our overall operating results. We have successfully integrated our Virtual Surveillance, LLC and ApexCCTV, LLC into our operations,” the chief executive officer of DirectView Holdings, Roger Ralston, said.

Return on assets

When it comes to the return on assets DirectView did better than SBA Communications as it recorded a figure of 86.11% compared to the latter’s figure of 1.54%. The net margin of DirectView Holdings was -53.25% while that of SBA Communications was 5.54%. SBA Communications return on equity was -4.79% while that of DirectView Holdings was -20.16%. Total revenues generated by ADT Security Services during this year’s first quarter were $1.116 billion and this was an increase of 5%.

According to MarketBeat the ratings score of SBA Communications is 2.79. This is after receiving 11 Buy ratings and 3 Hold ratings. Compared to SBA Communications, DirectView Holdings had a higher volatility rate.

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