ADP vs. AER: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and AER, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | AER |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | AerCap Holdings N.V. |
| Country | United States | Ireland |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Professional Services | Trading Companies & Distributors |
| Market Capitalization | 125.17 billion USD | 20.64 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 17, 1980 | November 21, 2006 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and AER by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | ADP | AER |
|---|---|---|
| 5-Day Price Return | 0.25% | 2.65% |
| 13-Week Price Return | -4.27% | 1.69% |
| 26-Week Price Return | -0.30% | 16.88% |
| 52-Week Price Return | 15.76% | 21.89% |
| Month-to-Date Return | -1.22% | 7.91% |
| Year-to-Date Return | 4.44% | 20.93% |
| 10-Day Avg. Volume | 1.40M | 1.40M |
| 3-Month Avg. Volume | 1.62M | 1.40M |
| 3-Month Volatility | 17.03% | 15.28% |
| Beta | 0.86 | 1.41 |
Profitability
Return on Equity (TTM)
ADP
72.62%
Professional Services Industry
- Max
- 52.17%
- Q3
- 30.06%
- Median
- 22.21%
- Q1
- 11.67%
- Min
- -13.44%
ADP’s Return on Equity of 72.62% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
AER
17.07%
Trading Companies & Distributors Industry
- Max
- 32.33%
- Q3
- 19.92%
- Median
- 14.05%
- Q1
- 11.46%
- Min
- 0.91%
AER’s Return on Equity of 17.07% is on par with the norm for the Trading Companies & Distributors industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ADP
19.84%
Professional Services Industry
- Max
- 26.06%
- Q3
- 13.34%
- Median
- 7.88%
- Q1
- 3.50%
- Min
- -2.93%
A Net Profit Margin of 19.84% places ADP in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
AER
39.91%
Trading Companies & Distributors Industry
- Max
- 17.73%
- Q3
- 10.81%
- Median
- 6.13%
- Q1
- 4.33%
- Min
- 2.09%
AER’s Net Profit Margin of 39.91% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
ADP
26.32%
Professional Services Industry
- Max
- 35.84%
- Q3
- 19.38%
- Median
- 12.54%
- Q1
- 7.36%
- Min
- -5.21%
An Operating Profit Margin of 26.32% places ADP in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
AER
63.19%
Trading Companies & Distributors Industry
- Max
- 25.50%
- Q3
- 15.13%
- Median
- 7.46%
- Q1
- 5.44%
- Min
- 3.55%
AER’s Operating Profit Margin of 63.19% is exceptionally high, placing it well above the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ADP | AER |
|---|---|---|
| Return on Equity (TTM) | 72.62% | 17.07% |
| Return on Assets (TTM) | 7.30% | 4.05% |
| Net Profit Margin (TTM) | 19.84% | 39.91% |
| Operating Profit Margin (TTM) | 26.32% | 63.19% |
| Gross Profit Margin (TTM) | 47.37% | 91.01% |
Financial Strength
Current Ratio (MRQ)
ADP
1.05
Professional Services Industry
- Max
- 2.45
- Q3
- 1.65
- Median
- 1.26
- Q1
- 1.10
- Min
- 0.47
ADP’s Current Ratio of 1.05 falls into the lower quartile for the Professional Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
AER
1.50
Trading Companies & Distributors Industry
- Max
- 2.82
- Q3
- 2.13
- Median
- 1.60
- Q1
- 1.43
- Min
- 0.46
AER’s Current Ratio of 1.50 aligns with the median group of the Trading Companies & Distributors industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ADP
1.41
Professional Services Industry
- Max
- 2.63
- Q3
- 1.44
- Median
- 0.91
- Q1
- 0.49
- Min
- 0.00
ADP’s Debt-to-Equity Ratio of 1.41 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
AER
2.57
Trading Companies & Distributors Industry
- Max
- 1.88
- Q3
- 1.18
- Median
- 0.74
- Q1
- 0.54
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.57, AER operates with exceptionally high leverage compared to the Trading Companies & Distributors industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
ADP
39.45
Professional Services Industry
- Max
- 39.67
- Q3
- 20.05
- Median
- 11.07
- Q1
- 5.36
- Min
- -2.22
ADP’s Interest Coverage Ratio of 39.45 is in the upper quartile for the Professional Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
AER
2.14
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.75
- Q1
- 2.70
- Min
- -1.67
In the lower quartile for the Trading Companies & Distributors industry, AER’s Interest Coverage Ratio of 2.14 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ADP | AER |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 1.50 |
| Quick Ratio (MRQ) | 1.05 | 0.62 |
| Debt-to-Equity Ratio (MRQ) | 1.41 | 2.57 |
| Interest Coverage Ratio (TTM) | 39.45 | 2.14 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADP
1.92%
Professional Services Industry
- Max
- 5.28%
- Q3
- 2.51%
- Median
- 1.63%
- Q1
- 0.62%
- Min
- 0.00%
ADP’s Dividend Yield of 1.92% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
AER
0.95%
Trading Companies & Distributors Industry
- Max
- 4.99%
- Q3
- 3.04%
- Median
- 1.94%
- Q1
- 1.22%
- Min
- 0.00%
AER’s Dividend Yield of 0.95% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
ADP
58.80%
Professional Services Industry
- Max
- 109.23%
- Q3
- 64.39%
- Median
- 47.00%
- Q1
- 20.35%
- Min
- 0.00%
ADP’s Dividend Payout Ratio of 58.80% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
AER
6.56%
Trading Companies & Distributors Industry
- Max
- 95.14%
- Q3
- 62.08%
- Median
- 51.17%
- Q1
- 26.24%
- Min
- 0.00%
AER’s Dividend Payout Ratio of 6.56% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ADP | AER |
|---|---|---|
| Dividend Yield (TTM) | 1.92% | 0.95% |
| Dividend Payout Ratio (TTM) | 58.80% | 6.56% |
Valuation
Price-to-Earnings Ratio (TTM)
ADP
30.59
Professional Services Industry
- Max
- 49.59
- Q3
- 36.59
- Median
- 28.13
- Q1
- 18.55
- Min
- 10.07
ADP’s P/E Ratio of 30.59 is within the middle range for the Professional Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
AER
6.89
Trading Companies & Distributors Industry
- Max
- 48.55
- Q3
- 26.73
- Median
- 17.17
- Q1
- 10.78
- Min
- 1.62
In the lower quartile for the Trading Companies & Distributors industry, AER’s P/E Ratio of 6.89 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
ADP
6.07
Professional Services Industry
- Max
- 9.54
- Q3
- 5.11
- Median
- 2.10
- Q1
- 0.75
- Min
- 0.11
ADP’s P/S Ratio of 6.07 is in the upper echelon for the Professional Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
AER
2.75
Trading Companies & Distributors Industry
- Max
- 4.88
- Q3
- 2.56
- Median
- 1.02
- Q1
- 0.60
- Min
- 0.29
AER’s P/S Ratio of 2.75 is in the upper echelon for the Trading Companies & Distributors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
ADP
20.23
Professional Services Industry
- Max
- 13.75
- Q3
- 8.87
- Median
- 4.35
- Q1
- 2.43
- Min
- 0.54
At 20.23, ADP’s P/B Ratio is at an extreme premium to the Professional Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
AER
1.18
Trading Companies & Distributors Industry
- Max
- 8.77
- Q3
- 4.33
- Median
- 2.00
- Q1
- 1.11
- Min
- 0.35
AER’s P/B Ratio of 1.18 is within the conventional range for the Trading Companies & Distributors industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ADP | AER |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 30.59 | 6.89 |
| Price-to-Sales Ratio (TTM) | 6.07 | 2.75 |
| Price-to-Book Ratio (MRQ) | 20.23 | 1.18 |
| Price-to-Free Cash Flow Ratio (TTM) | 28.41 | 23.57 |