ADP vs. BA: A Head-to-Head Stock Comparison

Company Overview

With ADP at 130.96 billion USD and BA at 153.22 billion USD, their market capitalizations sit in the same ballpark.

BA carries a higher beta at 1.41, indicating it’s more sensitive to market moves, while ADP remains steadier at 0.78.

Performance Comparison

This chart compares the performance of ADP and BA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ADP and BA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• BA shows a negative P/E of -13.30, highlighting a year of losses, whereas ADP at 32.83 trades on solid profitability.
• BA shows a negative forward PEG of -6.09, signaling expected earnings contraction, while ADP at 3.72 maintains analysts’ projections for stable or improved profits.
• BA carries a sub-zero price-to-book ratio of -46.04, indicating negative equity. In contrast, ADP (P/B 22.42) has positive book value.
• BA reports a negative Price-to-Free Cash Flow ratio of -12.01, showing a cash flow shortfall that could threaten its operational sustainability, while ADP at 28.97 maintains positive cash flow.

Dividend Comparison

ADP delivers a 1.82% dividend yield, blending income with growth, whereas BA appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

Financial Strength Metrics Comparison

This section dives into the financial resilience of ADP and BA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• BA posts a quick ratio of 0.37, indicating limited coverage of short-term debts from its most liquid assets—while ADP at 1.02 enjoys stronger liquidity resilience.
• BA has negative equity (debt-to-equity ratio -16.13), suggesting asset shortfalls, whereas ADP at 0.73 preserves healthier equity coverage.
• ADP meets its interest obligations (ratio 7.90). In stark contrast, BA’s negative ratio (-3.55) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.