Is NAPCO Security Technologies Stock Outperforming Its Rivals?

NSSC: NAPCO Security Technologies logo
NSSC
NAPCO Security Technologies

NAPCO Security Technologies (NSSC) stock delivered a moderate 14% return over the past year, but how does this smaller player truly measure up against its security and industrial peers? A closer examination reveals NSSC demonstrates strong profitability, boasting impressive operating and free cash flow margins. However, it exhibits lower revenue growth and a premium valuation compared to many rivals, which could limit upside potential against larger, faster-growing companies in the sector.

  • NSSC’s 26.9% operating margin, highest among peers, suggests superior cost control or a premium niche.
  • NSSC’s 2.9% LTM revenue growth lags peers, indicating slower market penetration or mature product lines.
  • NSSC’s 13.6% stock gain and 30.8 PE trail ALLE/REZI, signaling investor growth concerns despite valuation.

Here’s how NAPCO Security Technologies stacks up across size, valuation, and profitability versus key peers.

  NSSC ALLE ALRM ADT REZI MSA
Market Cap ($ Bil) 1.5 14.2 2.4 6.6 5.3 7.1
Revenue ($ Bil) 0.2 4.0 1.0 5.1 7.4 1.9
PE Ratio 30.8 22.2 18.9 10.2 -8.2 25.4
LTM Revenue Growth 2.9% 6.9% 7.4% 6.3% 15.5% 3.3%
LTM Operating Margin 26.9% 21.0% 13.1% 25.5% 8.4% 21.0%
LTM FCF Margin 27.9% 17.1% 15.4% 27.1% -17.9% 15.2%
12M Market Return 13.6% 26.4% -20.1% 7.0% 57.2% 11.5%

For more details on NAPCO Security Technologies, read Buy or Sell NSSC Stock. Below we compare NSSC’s growth, margin, and valuation with peers across years

Revenue Growth Comparison

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  LTM 2025 2024 2023 2022
NSSC 2.9% -3.8% 11.1% 18.4%  
ALLE 6.9% 3.3% 11.6% 14.1%
ALRM 7.4% 6.6% 4.6% 12.5%
ADT 6.3% 5.3% 6.2% 4.3%
REZI 15.5% 8.3% -2.0% 9.0%
MSA 3.3% 1.1% 17.0% 9.1%

Operating Margin Comparison

  LTM 2025 2024 2023 2022
NSSC 26.9% 25.5% 28.5% 17.8%  
ALLE 21.0% 20.7% 19.6% 17.9%
ALRM 13.1% 11.5% 7.6% 6.1%
ADT 25.5% 25.2% 26.2% 16.8%
REZI 8.4% 8.5% 9.4% 10.1%
MSA 21.0% 22.1% 21.7% 18.2%

PE Ratio Comparison

  LTM 2025 2024 2023 2022
NSSC 30.8 34.9 26.3 46.4  
ALLE 22.2 23.2 21.3 24.3
ALRM 18.9 20.4 37.4 57.3
ADT 10.2 14.5 13.6 46.4
REZI -8.2 44.2 16.1 9.7
MSA 25.4 22.1 111.2 36.9

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