Seek Returns logo

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

Updated on

Here’s a clear look at ADP and CLH, 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 CLH’s 12.55 billion USD, indicating a significant difference in their market valuations.

With betas of 0.80 for ADP and 1.17 for CLH, both stocks show similar sensitivity to overall market movements.

SymbolADPCLH
Company NameAutomatic Data Processing, Inc.Clean Harbors, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesWaste Management
CEOMaria BlackEric W. Gerstenberg
Price309.2 USD234.15 USD
Market Cap125.51 billion USD12.55 billion USD
Beta0.801.17
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980November 24, 1987
ADRNoNo

Historical Performance

This chart compares the performance of ADP and CLH 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. CLH: 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.

CLH

15.47%

Waste Management Industry

Max
40.07%
Q3
22.07%
Median
11.65%
Q1
-3.10%
Min
-27.58%

CLH’s Return on Equity of 15.47% is on par with the norm for the Waste Management industry, indicating its profitability relative to shareholder equity is typical for the sector.

ADP vs. CLH: A comparison of their ROE against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

7.88%

Waste Management Industry

Max
9.07%
Q3
7.95%
Median
3.52%
Q1
1.30%
Min
-4.75%

CLH’s Return on Invested Capital of 7.88% is in line with the norm for the Waste Management industry, reflecting a standard level of efficiency in generating profits from its capital base.

ADP vs. CLH: A comparison of their ROIC against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

6.58%

Waste Management Industry

Max
12.88%
Q3
11.97%
Median
6.76%
Q1
-0.76%
Min
-9.89%

CLH’s Net Profit Margin of 6.58% is aligned with the median group of its peers in the Waste Management industry. This indicates its ability to convert revenue into profit is typical for the sector.

ADP vs. CLH: A comparison of their Net Profit Margin against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

11.04%

Waste Management Industry

Max
20.22%
Q3
13.63%
Median
7.87%
Q1
1.29%
Min
-5.01%

CLH’s Operating Profit Margin of 11.04% is around the midpoint for the Waste Management industry, indicating that its efficiency in managing core business operations is typical for the sector.

ADP vs. CLH: A comparison of their Operating Margin against their respective Staffing & Employment Services and Waste Management industry benchmarks.

Profitability at a Glance

SymbolADPCLH
Return on Equity (TTM)76.78%15.47%
Return on Assets (TTM)7.08%5.40%
Return on Invested Capital (TTM)23.22%7.88%
Net Profit Margin (TTM)19.79%6.58%
Operating Profit Margin (TTM)17.38%11.04%
Gross Profit Margin (TTM)47.09%29.01%

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.

CLH

2.37

Waste Management Industry

Max
2.37
Q3
1.98
Median
1.06
Q1
0.79
Min
0.66

CLH’s Current Ratio of 2.37 is in the upper quartile for the Waste Management industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ADP vs. CLH: A comparison of their Current Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

1.18

Waste Management Industry

Max
2.64
Q3
1.57
Median
1.12
Q1
0.87
Min
0.07

CLH’s Debt-to-Equity Ratio of 1.18 is typical for the Waste Management industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ADP vs. CLH: A comparison of their D/E Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

5.36

Waste Management Industry

Max
6.06
Q3
5.49
Median
2.34
Q1
0.26
Min
-2.04

CLH’s Interest Coverage Ratio of 5.36 is positioned comfortably within the norm for the Waste Management industry, indicating a standard and healthy capacity to cover its interest payments.

ADP vs. CLH: A comparison of their Interest Coverage against their respective Staffing & Employment Services and Waste Management industry benchmarks.

Financial Strength at a Glance

SymbolADPCLH
Current Ratio (TTM)1.022.37
Quick Ratio (TTM)1.021.98
Debt-to-Equity Ratio (TTM)0.731.18
Debt-to-Asset Ratio (TTM)0.080.42
Net Debt-to-EBITDA Ratio (TTM)0.262.31
Interest Coverage Ratio (TTM)7.905.36

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ADP vs. CLH: 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.

CLH

0.00%

Waste Management Industry

Max
1.38%
Q3
0.73%
Median
0.06%
Q1
0.00%
Min
0.00%

CLH 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. CLH: A comparison of their Dividend Yield against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

0.00%

Waste Management Industry

Max
49.31%
Q3
43.13%
Median
17.31%
Q1
0.26%
Min
0.00%

CLH 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. CLH: A comparison of their Payout Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

Dividend at a Glance

SymbolADPCLH
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.

CLH

32.18

Waste Management Industry

Max
76.31
Q3
66.40
Median
35.51
Q1
32.40
Min
9.07

In the lower quartile for the Waste Management industry, CLH’s P/E Ratio of 32.18 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ADP vs. CLH: A comparison of their P/E Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

2.20

Waste Management Industry

Max
6.52
Q3
4.74
Median
2.97
Q1
0.85
Min
0.06

CLH’s Forward PEG Ratio of 2.20 is within the middle range of its peers in the Waste Management industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ADP vs. CLH: A comparison of their Forward PEG Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

2.11

Waste Management Industry

Max
5.29
Q3
4.49
Median
3.59
Q1
1.82
Min
0.31

CLH’s P/S Ratio of 2.11 aligns with the market consensus for the Waste Management industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ADP vs. CLH: A comparison of their P/S Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

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.

CLH

4.90

Waste Management Industry

Max
10.62
Q3
6.13
Median
4.78
Q1
2.85
Min
1.68

CLH’s P/B Ratio of 4.90 is within the conventional range for the Waste Management 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.

ADP vs. CLH: A comparison of their P/B Ratio against their respective Staffing & Employment Services and Waste Management industry benchmarks.

Valuation at a Glance

SymbolADPCLH
Price-to-Earnings Ratio (P/E, TTM)31.4732.18
Forward PEG Ratio (TTM)3.562.20
Price-to-Sales Ratio (P/S, TTM)6.212.11
Price-to-Book Ratio (P/B, TTM)21.494.90
Price-to-Free Cash Flow Ratio (P/FCF, TTM)27.7737.04
EV-to-EBITDA (TTM)20.5713.68
EV-to-Sales (TTM)6.292.54