ADP vs. CTAS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and CTAS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | CTAS |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Cintas Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Professional Services | Commercial Services & Supplies |
| Market Capitalization | 125.17 billion USD | 87.34 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | August 19, 1983 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and CTAS 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 | CTAS |
|---|---|---|
| 5-Day Price Return | 0.25% | -2.09% |
| 13-Week Price Return | -4.27% | -2.82% |
| 26-Week Price Return | -0.30% | 5.21% |
| 52-Week Price Return | 15.76% | 12.15% |
| Month-to-Date Return | -1.22% | -2.62% |
| Year-to-Date Return | 4.44% | 18.63% |
| 10-Day Avg. Volume | 1.40M | 1.46M |
| 3-Month Avg. Volume | 1.62M | 1.47M |
| 3-Month Volatility | 17.03% | 17.47% |
| Beta | 0.86 | 1.03 |
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.
CTAS
41.21%
Commercial Services & Supplies Industry
- Max
- 31.93%
- Q3
- 18.03%
- Median
- 9.43%
- Q1
- 6.44%
- Min
- -9.69%
CTAS’s Return on Equity of 41.21% is exceptionally high, placing it well beyond the typical range for the Commercial Services & Supplies industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
CTAS
17.53%
Commercial Services & Supplies Industry
- Max
- 17.53%
- Q3
- 9.01%
- Median
- 5.20%
- Q1
- 2.75%
- Min
- -2.31%
A Net Profit Margin of 17.53% places CTAS in the upper quartile for the Commercial Services & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.
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.
CTAS
22.82%
Commercial Services & Supplies Industry
- Max
- 23.43%
- Q3
- 12.19%
- Median
- 8.10%
- Q1
- 3.18%
- Min
- -6.03%
An Operating Profit Margin of 22.82% places CTAS in the upper quartile for the Commercial Services & Supplies industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ADP | CTAS |
|---|---|---|
| Return on Equity (TTM) | 72.62% | 41.21% |
| Return on Assets (TTM) | 7.30% | 19.14% |
| Net Profit Margin (TTM) | 19.84% | 17.53% |
| Operating Profit Margin (TTM) | 26.32% | 22.82% |
| Gross Profit Margin (TTM) | 47.37% | 50.04% |
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.
CTAS
2.09
Commercial Services & Supplies Industry
- Max
- 2.94
- Q3
- 1.89
- Median
- 1.38
- Q1
- 0.87
- Min
- 0.53
CTAS’s Current Ratio of 2.09 is in the upper quartile for the Commercial Services & Supplies industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.
CTAS
0.52
Commercial Services & Supplies Industry
- Max
- 1.67
- Q3
- 1.08
- Median
- 0.73
- Q1
- 0.36
- Min
- 0.00
CTAS’s Debt-to-Equity Ratio of 0.52 is typical for the Commercial Services & Supplies industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
CTAS
24.70
Commercial Services & Supplies Industry
- Max
- 24.70
- Q3
- 12.37
- Median
- 7.16
- Q1
- 2.69
- Min
- -10.97
CTAS’s Interest Coverage Ratio of 24.70 is in the upper quartile for the Commercial Services & Supplies industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADP | CTAS |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 2.09 |
| Quick Ratio (MRQ) | 1.05 | 1.71 |
| Debt-to-Equity Ratio (MRQ) | 1.41 | 0.52 |
| Interest Coverage Ratio (TTM) | 39.45 | 24.70 |
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.
CTAS
0.70%
Commercial Services & Supplies Industry
- Max
- 3.44%
- Q3
- 2.30%
- Median
- 1.37%
- Q1
- 0.63%
- Min
- 0.00%
CTAS’s Dividend Yield of 0.70% is consistent with its peers in the Commercial Services & Supplies industry, providing a dividend return that is standard for its sector.
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.
CTAS
33.75%
Commercial Services & Supplies Industry
- Max
- 137.88%
- Q3
- 72.93%
- Median
- 40.45%
- Q1
- 23.31%
- Min
- 0.00%
CTAS’s Dividend Payout Ratio of 33.75% is within the typical range for the Commercial Services & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | CTAS |
|---|---|---|
| Dividend Yield (TTM) | 1.92% | 0.70% |
| Dividend Payout Ratio (TTM) | 58.80% | 33.75% |
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.
CTAS
48.29
Commercial Services & Supplies Industry
- Max
- 57.20
- Q3
- 37.10
- Median
- 22.38
- Q1
- 16.35
- Min
- 0.00
A P/E Ratio of 48.29 places CTAS in the upper quartile for the Commercial Services & Supplies industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
CTAS
8.46
Commercial Services & Supplies Industry
- Max
- 4.64
- Q3
- 2.28
- Median
- 0.97
- Q1
- 0.64
- Min
- 0.00
With a P/S Ratio of 8.46, CTAS trades at a valuation that eclipses even the highest in the Commercial Services & Supplies industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
CTAS
19.50
Commercial Services & Supplies Industry
- Max
- 6.71
- Q3
- 4.38
- Median
- 2.39
- Q1
- 1.57
- Min
- 0.43
At 19.50, CTAS’s P/B Ratio is at an extreme premium to the Commercial Services & Supplies 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.
Valuation at a Glance
| Symbol | ADP | CTAS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 30.59 | 48.29 |
| Price-to-Sales Ratio (TTM) | 6.07 | 8.46 |
| Price-to-Book Ratio (MRQ) | 20.23 | 19.50 |
| Price-to-Free Cash Flow Ratio (TTM) | 28.41 | 49.80 |