ADP vs. AME: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and AME, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
ADP’s market capitalization of 127.67 billion USD is substantially larger than AME’s 41.53 billion USD, indicating a significant difference in their market valuations.
With betas of 0.80 for ADP and 1.11 for AME, both stocks show similar sensitivity to overall market movements.
| Symbol | ADP | AME |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | AMETEK, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Industrial - Machinery |
| CEO | Ms. Maria Black | Mr. David A. Zapico |
| Price | 314.52 USD | 179.87 USD |
| Market Cap | 127.67 billion USD | 41.53 billion USD |
| Beta | 0.80 | 1.11 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | July 19, 1984 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and AME over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- ADP: $13053.33 (30.53%)
- AME: $10422.41 (4.22%)
Valuation Metrics Comparison
This section compares the market valuation of ADP and AME. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- ADP’s Forward PEG ratio of 3.66 and AME’s Forward PEG ratio of 3.92 are both considered very high. For ADP, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. AME’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
| Symbol | ADP | AME |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.01 | 29.28 |
| Forward PEG Ratio (TTM) | 3.66 | 3.92 |
| Price-to-Sales Ratio (P/S, TTM) | 6.32 | 5.99 |
| Price-to-Book Ratio (P/B, TTM) | 21.86 | 4.16 |
| EV-to-EBITDA (TTM) | 20.92 | 20.53 |
| EV-to-Sales (TTM) | 6.40 | 6.21 |
Dividend Comparison
ADP’s dividend yield of 1.87% is notably higher than AME’s 0.64%, suggesting a stronger emphasis on returning cash to shareholders.
| Symbol | ADP | AME |
|---|---|---|
| Dividend Yield (TTM) | 1.87% | 0.64% |
Financial Strength Metrics Comparison
Explore the financial strength details for ADP and AME in the table below.
| Symbol | ADP | AME |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.41 |
| Quick Ratio (TTM) | 1.02 | 0.86 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 0.19 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.13 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 0.73 |
| Interest Coverage Ratio (TTM) | 7.90 | 23.38 |