ADT vs AMZN: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: ADT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADT and AMZN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADT and AMZN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

ADT Inc. provides security, interactive, and smart-home solutions to residential and small-business customers across the United States, with its core business built on professionally installed and monitored alarm systems billed as recurring monthly revenue (RMR). The company reported total revenue of roughly $5.1 billion for full-year 2025 and end-of-period RMR of about $359 million (around $4.3 billion annualized), with monitoring and related services making up the large majority of revenue. Partnerships with Google (devices and AI) and State Farm (insurance-linked distribution), plus its February 2026 acquisition of Origin AI for Wi-Fi sensing, are meant to modernize the offering and improve retention.

Full ADT guide

Amazon is one of the largest companies in the world, operating across three major business lines. Amazon Web Services (AWS) is the dominant global cloud computing provider, generating around $110 billion in annual revenue and most of the company's operating income. The North America and International e-commerce segments include the Amazon online marketplace, Prime membership, and third-party seller services. Advertising has grown into the third-largest digital ad business in the world (after Google and Meta).

Full AMZN guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ADT drivers: Recurring monthly revenue base; Cash flow and capital returns.
• AMZN drivers: AWS as the AI infrastructure backbone; Retail margin expansion.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: ADT carries substantial leverage, with net debt of roughly $7.5 billion, so higher-for-longer interest rates raise refinancing and interest costs. For AMZN, hyperscaler AI capex is concentrated; if model training demand cools, AWS growth slows.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ADT if you believe its drivers more; AMZN if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ADT and AMZN guides.

ADT. ADT trades as a leveraged, cash-generative subscription business, with an enterprise value well above its equity value because of the large debt load. Full-year 2025 revenue grew about 5 percent while 2026 guidance points to roughly flat revenue and adjusted EPS with an emphasis on free cash flow. The stock has traded in the high single digits per share, and the small dividend plus a $1.5 billion buyback authorization frame much of the capital-return case.

AMZN. Amazon's headline P/E reflects the aggregate of low-margin retail and high-margin AWS/advertising. The valuation premium is paid for AWS specifically; retail is essentially valued near cost. P/E of 40x is elevated versus the S&P 500 average (~22x), supported by AWS growth re-accelerating.

Headline figures (approximate, July 2026): ADT shows revenue (fy2025) ~$5.1B, recurring monthly revenue (rmr) ~$359M (~$4.3B annualized), adjusted eps (fy2025) ~$0.89, adjusted free cash flow (fy2025, incl. swaps) ~$863M; AMZN shows revenue (ttm) ~$650 billion, operating margin ~10% (AWS materially higher; retail much lower), net income (ttm) ~$60 billion, eps (ttm) ~$5.50.

ADT and AMZN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADT and AMZN exposure against your real portfolio. It is not an investment adviser.