Seek Returns logo

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

Updated on

Here’s a clear look at ADP and BZ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ADP’s market capitalization of 125.51 billion USD is substantially larger than BZ’s 3.87 billion USD, indicating a significant difference in their market valuations.

ADP’s beta of 0.80 points to significantly higher volatility compared to BZ (beta: 0.39), suggesting ADP has greater potential for both gains and losses relative to market movements.

BZ is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ADP, on the other hand, is a domestic entity.

SymbolADPBZ
Company NameAutomatic Data Processing, Inc.Kanzhun Limited
CountryUSCN
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesStaffing & Employment Services
CEOMaria BlackPeng Zhao
Price309.2 USD17.95 USD
Market Cap125.51 billion USD3.87 billion USD
Beta0.800.39
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980June 11, 2021
ADRNoYes

Historical Performance

This chart compares the performance of ADP and BZ 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.

ADP vs. BZ: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ADP

76.78%

Staffing & Employment Services Industry

Max
76.78%
Q3
46.63%
Median
19.55%
Q1
6.99%
Min
-1.64%

In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Equity of 76.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

BZ

12.38%

Staffing & Employment Services Industry

Max
76.78%
Q3
46.63%
Median
19.55%
Q1
6.99%
Min
-1.64%

BZ’s Return on Equity of 12.38% is on par with the norm for the Staffing & Employment Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

ADP vs. BZ: A comparison of their ROE against the Staffing & Employment Services industry benchmark.

Return on Invested Capital

ADP

23.22%

Staffing & Employment Services Industry

Max
23.22%
Q3
18.16%
Median
9.93%
Q1
4.57%
Min
-1.94%

In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Invested Capital of 23.22% signifies a highly effective use of its capital to generate profits when compared to its peers.

BZ

7.95%

Staffing & Employment Services Industry

Max
23.22%
Q3
18.16%
Median
9.93%
Q1
4.57%
Min
-1.94%

BZ’s Return on Invested Capital of 7.95% is in line with the norm for the Staffing & Employment Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

ADP vs. BZ: A comparison of their ROIC against the Staffing & Employment Services industry benchmark.

Net Profit Margin

ADP

19.79%

Staffing & Employment Services Industry

Max
30.46%
Q3
17.07%
Median
3.53%
Q1
0.98%
Min
-4.15%

A Net Profit Margin of 19.79% places ADP in the upper quartile for the Staffing & Employment Services industry, signifying strong profitability and more effective cost management than most of its peers.

BZ

24.53%

Staffing & Employment Services Industry

Max
30.46%
Q3
17.07%
Median
3.53%
Q1
0.98%
Min
-4.15%

A Net Profit Margin of 24.53% places BZ in the upper quartile for the Staffing & Employment Services industry, signifying strong profitability and more effective cost management than most of its peers.

ADP vs. BZ: A comparison of their Net Profit Margin against the Staffing & Employment Services industry benchmark.

Operating Profit Margin

ADP

17.38%

Staffing & Employment Services Industry

Max
19.92%
Q3
12.35%
Median
4.95%
Q1
2.59%
Min
-2.06%

An Operating Profit Margin of 17.38% places ADP in the upper quartile for the Staffing & Employment Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

BZ

19.92%

Staffing & Employment Services Industry

Max
19.92%
Q3
12.35%
Median
4.95%
Q1
2.59%
Min
-2.06%

An Operating Profit Margin of 19.92% places BZ in the upper quartile for the Staffing & Employment Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ADP vs. BZ: A comparison of their Operating Margin against the Staffing & Employment Services industry benchmark.

Profitability at a Glance

SymbolADPBZ
Return on Equity (TTM)76.78%12.38%
Return on Assets (TTM)7.08%9.11%
Return on Invested Capital (TTM)23.22%7.95%
Net Profit Margin (TTM)19.79%24.53%
Operating Profit Margin (TTM)17.38%19.92%
Gross Profit Margin (TTM)47.09%83.43%

Financial Strength

Current Ratio

ADP

1.02

Staffing & Employment Services Industry

Max
2.06
Q3
2.01
Median
1.65
Q1
1.15
Min
1.02

ADP’s Current Ratio of 1.02 falls into the lower quartile for the Staffing & Employment Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

BZ

3.56

Staffing & Employment Services Industry

Max
2.06
Q3
2.01
Median
1.65
Q1
1.15
Min
1.02

BZ’s Current Ratio of 3.56 is exceptionally high, placing it well outside the typical range for the Staffing & Employment Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ADP vs. BZ: A comparison of their Current Ratio against the Staffing & Employment Services industry benchmark.

Debt-to-Equity Ratio

ADP

0.73

Staffing & Employment Services Industry

Max
0.73
Q3
0.70
Median
0.22
Q1
0.11
Min
0.02

ADP’s leverage is in the upper quartile of the Staffing & Employment Services industry, with a Debt-to-Equity Ratio of 0.73. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

BZ

0.02

Staffing & Employment Services Industry

Max
0.73
Q3
0.70
Median
0.22
Q1
0.11
Min
0.02

Falling into the lower quartile for the Staffing & Employment Services industry, BZ’s Debt-to-Equity Ratio of 0.02 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ADP vs. BZ: A comparison of their D/E Ratio against the Staffing & Employment Services industry benchmark.

Interest Coverage Ratio

ADP

7.90

Staffing & Employment Services Industry

Max
7.90
Q3
7.90
Median
2.91
Q1
-0.32
Min
-1.17

ADP’s Interest Coverage Ratio of 7.90 is positioned comfortably within the norm for the Staffing & Employment Services industry, indicating a standard and healthy capacity to cover its interest payments.

BZ

--

Staffing & Employment Services Industry

Max
7.90
Q3
7.90
Median
2.91
Q1
-0.32
Min
-1.17

Interest Coverage Ratio data for BZ is currently unavailable.

ADP vs. BZ: A comparison of their Interest Coverage against the Staffing & Employment Services industry benchmark.

Financial Strength at a Glance

SymbolADPBZ
Current Ratio (TTM)1.023.56
Quick Ratio (TTM)1.023.56
Debt-to-Equity Ratio (TTM)0.730.02
Debt-to-Asset Ratio (TTM)0.080.01
Net Debt-to-EBITDA Ratio (TTM)0.26-1.62
Interest Coverage Ratio (TTM)7.90--

Growth

The following charts compare key year-over-year (YoY) growth metrics for ADP and BZ. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ADP vs. BZ: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ADP vs. BZ: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ADP vs. BZ: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ADP

1.95%

Staffing & Employment Services Industry

Max
5.58%
Q3
3.50%
Median
2.08%
Q1
0.83%
Min
0.00%

ADP’s Dividend Yield of 1.95% is consistent with its peers in the Staffing & Employment Services industry, providing a dividend return that is standard for its sector.

BZ

0.00%

Staffing & Employment Services Industry

Max
5.58%
Q3
3.50%
Median
2.08%
Q1
0.83%
Min
0.00%

BZ currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ADP vs. BZ: A comparison of their Dividend Yield against the Staffing & Employment Services industry benchmark.

Dividend Payout Ratio

ADP

58.73%

Staffing & Employment Services Industry

Max
161.25%
Q3
109.23%
Median
58.73%
Q1
15.69%
Min
0.00%

ADP’s Dividend Payout Ratio of 58.73% is within the typical range for the Staffing & Employment Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BZ

0.00%

Staffing & Employment Services Industry

Max
161.25%
Q3
109.23%
Median
58.73%
Q1
15.69%
Min
0.00%

BZ has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ADP vs. BZ: A comparison of their Payout Ratio against the Staffing & Employment Services industry benchmark.

Dividend at a Glance

SymbolADPBZ
Dividend Yield (TTM)1.95%0.00%
Dividend Payout Ratio (TTM)58.73%0.00%

Valuation

Price-to-Earnings Ratio

ADP

31.47

Staffing & Employment Services Industry

Max
35.74
Q3
30.98
Median
20.51
Q1
15.65
Min
7.85

A P/E Ratio of 31.47 places ADP in the upper quartile for the Staffing & Employment Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BZ

15.07

Staffing & Employment Services Industry

Max
35.74
Q3
30.98
Median
20.51
Q1
15.65
Min
7.85

In the lower quartile for the Staffing & Employment Services industry, BZ’s P/E Ratio of 15.07 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ADP vs. BZ: A comparison of their P/E Ratio against the Staffing & Employment Services industry benchmark.

Forward P/E to Growth Ratio

ADP

3.56

Staffing & Employment Services Industry

Max
3.23
Q3
1.89
Median
1.18
Q1
1.00
Min
0.39

ADP’s Forward PEG Ratio of 3.56 is exceptionally high for the Staffing & Employment Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

BZ

1.08

Staffing & Employment Services Industry

Max
3.23
Q3
1.89
Median
1.18
Q1
1.00
Min
0.39

BZ’s Forward PEG Ratio of 1.08 is within the middle range of its peers in the Staffing & Employment Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ADP vs. BZ: A comparison of their Forward PEG Ratio against the Staffing & Employment Services industry benchmark.

Price-to-Sales Ratio

ADP

6.21

Staffing & Employment Services Industry

Max
3.70
Q3
2.09
Median
0.86
Q1
0.59
Min
0.09

With a P/S Ratio of 6.21, ADP trades at a valuation that eclipses even the highest in the Staffing & Employment Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

BZ

3.66

Staffing & Employment Services Industry

Max
3.70
Q3
2.09
Median
0.86
Q1
0.59
Min
0.09

BZ’s P/S Ratio of 3.66 is in the upper echelon for the Staffing & Employment 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.

ADP vs. BZ: A comparison of their P/S Ratio against the Staffing & Employment Services industry benchmark.

Price-to-Book Ratio

ADP

21.49

Staffing & Employment Services Industry

Max
21.09
Q3
12.56
Median
3.17
Q1
1.96
Min
0.33

The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.

BZ

1.78

Staffing & Employment Services Industry

Max
21.09
Q3
12.56
Median
3.17
Q1
1.96
Min
0.33

The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.

ADP vs. BZ: A comparison of their P/B Ratio against the Staffing & Employment Services industry benchmark.

Valuation at a Glance

SymbolADPBZ
Price-to-Earnings Ratio (P/E, TTM)31.4715.07
Forward PEG Ratio (TTM)3.561.08
Price-to-Sales Ratio (P/S, TTM)6.213.66
Price-to-Book Ratio (P/B, TTM)21.491.78
Price-to-Free Cash Flow Ratio (P/FCF, TTM)27.777.62
EV-to-EBITDA (TTM)20.5716.00
EV-to-Sales (TTM)6.293.32